tax credits

While most of the inside-the-beltway punditry focused on congressional dysfunction and political brinkmanship over the New Year’s Day fiscal cliff vote regarding federal tax rates, the legislation includes a section — Title IV, Energy Tax Credits — that extends retroactively a number of energy credits from January 1, 2012 through December 31, 2013.

The legislation covers tax credits for homeowners to improve the energy efficiency of their homes (see Section 408) and addresses wind energy, geothermal, biodiesel and more.

To download the legislation go to American Taxpayer Act.

Bethesda Green plans to organize an information forum early this year to review some of the details and current status of federal and state energy tax credits. Stay tuned.

Montgomery County Energy InfoWIRE posted this important reminder:

Time is running out to take advantage of federal tax credits for energy-efficiency improvements.  The American Recovery and Reinvestment Act provides a tax credit for 30% of the cost or up to $1,500 towards specific energy-efficiency improvements for residential properties in 2009 and 2010.  These credits are slated to expire at the end of this year.  So if you have been thinking about that insulation job, heating and cooling system replacement, or new windows now is the time to talk to your local service and product providers.

If you are considering a solar or geothermal system, no reason to panic. These credits are slated to be available until 2016.  As always, consider consulting an appropriate tax professional regarding the eligibility of improvements.

The DOE Energy Savers Program has published a helpful fact sheet on the federal tax credits