Tax Credits for Your Energy-Efficient Purchases

As April 15th draws nearer, no doubt taxes are on your mind. You may be wondering whether the recently passed American Recovery and Reinvestment Act (aka the "Recovery Act") will affect your taxes for 2008. While the IRS says that the tax provisions in the Recovery Act won't affect most people's 2008 tax returns, you may already be planning an energy-efficient purchase in 2009 that will be eligible for a tax credit.

Back in October, I wrote about energy tax incentives available in 2009. The Recovery Act amended the energy tax credits, and the good news is that those tax credits are still available. The even better news?

• The credits for items such as windows and doors, insulation, roofs, HVAC, water heaters (non-solar), and biomass stoves are now available for improvements made in 2009 AND 2010 (previously they were only available for 2009).
• The credits have been raised from 10% to 30% of the cost. Those items that had a specific dollar amount have been changed to a 30% credit.
• The maximum credit over two years has been increased to $1,500 (up from $500).
• Improvements such as geothermal heat pumps, solar water heaters, solar electric systems, small wind systems, and fuel cells are not subject to the $1,500 maximum and are still available through 2016 for both existing and new homes.
• The $200 cap on tax credits for windows has been removed, but note that the requirements are more stringent and not all ENERGY STAR windows qualify for a credit.

For more details on the energy tax credits available, see the summary of federal tax credits for energy efficiency on the ENERGY STAR® Web site. Also be sure to check out the tax credit FAQs for answers to more specific questions, including which credits are available for 2008.

Don't forget that tax credits aren't the only way to offset your energy costs. You can reduce your energy costs by finding help from your state, city, or utility; or by purchasing energy-efficient products. For more ways to find assistance with energy costs, check out the blog entries "Six Places to Find Help with Your Energy Costs" and "Help with Energy Costs for Low-Income Families."

Allison Casey is a senior communicator at DOE's National Renewable Energy Laboratory, which assists EERE in providing technical content for many of its Web sites.

Source: Energy Savers Blog

How can I make my home more energy efficient?

There are various ways to make your home energy efficient. Some cost nothing and are self-reliant, such as unplugging items that don't need to be plugged in all the time and others mentioned throughout this blog. And many have a price, the price depends on how much your willing to invest.

Solar energy, for example, is an excellent resource for using the suns energy to power your home. With solar you can substantially reduce and in some cases eliminate your monthly power bill. Government incentives and rebates are available, these differ from state to state. The cost can be expensive, depending on your budget.

Another product- Energy Saving Kits. Not as effective as Solar but the cost is very reasonable. Let's take a look at an energy saving kit and what it can do for your home:

Energy Saving Kits are comprised of 4 products, a 90 day money back guarantee and savings of 35% or more monthly on energy costs:

1) Radiant Barrier: Radiant barriers are installed in homes—most commonly in attics—to reduce summer heat gain and winter heat loss, which helps lower heating and cooling costs. The barriers consist of a highly reflective material that reflects radiant heat rather than absorbing it.

How Radiant Barriers Work
Heat travels from a warm area to a cool area by a combination of conduction, convection, and radiation. Heat flows by conduction from a hotter material to a colder material when the two materials touch. Heat transfer by convection occurs when a liquid or gas is heated, becomes less dense, and rises. Radiant heat travels in a straight line away from the hot surface and heats anything solid as the wave of energy hits it.

When the sun heats a roof, it's primarily the sun's radiant energy that makes the roof hot. A large portion of this heat travels by conduction through the roofing materials to the attic side of the roof. The hot roof material then radiates its gained heat energy into the cooler attic (some of the roof's heat will radiate in other directions too). A radiant barrier reduces the radiant heat transfer from the roof to the attic space.

Fiberglass re-enforced (perforated)aluminum foil insulation; Fire retardant; Reflects 95% of radiation heat Perforated aluminum foil radiant barrier to eliminating sweating; Use for attics, roof and walls; Easily stapled into place in attic on ceiling joists orafters, sealed with aluminum tape; Adhesion Good on clean and dry surface; No Discoloration Resistance Excellent resistance to water, water vapor, oxidation and weathering.

(2) Duct Seal System: Duct sealing is a combination of Radiant Barrier and Duct Seal

Leaky ducts can reduce heating and cooling system efficiency by as much as 20 percent. Sealing and insulating ducts increases efficiency, lowers your energy bills, and can often pay for itself in energy savings.

Plus, if you’re planning to install new heating and cooling equipment, a well-designed and sealed duct system may allow you to downsize to a smaller, less costly heating and cooling system that will provide better humidification.

1) Tape all seams in duct work
2) Wrap all duct work with radiant barrier
3) Use same tape to attach radiant barrier to duct work and seal all seams

(3) The Solar Attic Fan: Saving energy in your home must start at the top. As warm air rises, it collects in the attic making your entire house hotter and your air conditioning less efficient. This costs you valuable dollars and unnecessary wear and tear on your cooling equipment.

The Solar Attic fan removes hot air from the attic keeping your home cooler while maximizing your air conditioner's efficiency. The solar powered fan draws no electricity from the utility and will cost you nothing to operate!

Removes Hot Attic Air; Solar Powered; Up to 850 CFM Air Flow; Optional Thermostat; Proudly Made in USA; 10/5/25 Year Warranty.

(4) Power Save 1200 Energy Saver: A small gray box that fits neatly next to your breaker panel, saves you money year after year and protects the entire home.

The Power Save 1200 was designed with the homeowner in mind, providing lower energy bills, increased motor and appliance life, for all of the equipment inside of your house. Residential customers throughout North America could see a realized savings of 8% - 10% typically and as much as 25% on their electrical usage (and thus power bills). The Power Save 1200 is UL Certified as the Cat. No. ABET 2201 and CSA certified.



The cost of an Energy Saving Kit depends on the square footage and whether your home is a one or two story home. To view pricing and more detailed information about energy saving kits visit: Energy Saving Kit. Any product in the Energy Saving Kit can be purchased independently.

Energy saving products- Where did they all come from?

It can be confusing with all the "energy saving products" that seem to have crawled out the cracks since the announcement of Obama's new Energy Plan. The truth is many of the energy saving products have been available for years. It's just that consumers are becoming more "Green Energy, Renewable Energy" conscious (1) because of the economy - looking for ways to save money and, of course, high energy costs (2) because of government emphasis under Obama's Energy Plan- you hear it in the news.

If you are like many consumers you probably fall under number (1) - the economy. You need to save money and don't know which energy saving products would work best or would work at all. The best advice- Do your research, talk to family and friends, subscribe to blogs, ask questions. Many companies offer a guarantee on their products, this is a great incentive. Doing something is better than doing nothing, even if it is to save money. At least in the process your helping the environment.

Author:
Tim with Greenwise Power Solutions. www.greenwisepower.com
-Energy Saving Kit: significantly reduces electric bills by eliminating wasted electrical consumption and increasing the overall efficiency of the home.