FAQs on green energy, weatherization tax credits etc.
Wednesday's column was on all the people who want to subsidize green energy choices, from the state of Maryland to the IRS to Baltimore Gas & Electric. The piece generated numerous reader questions.
Q. Are you sure I can swtich my electricity purchases to Clean Currents or Washington Gas Energy Services and stay in BGE's PeakRewards club, which gives discounts for putting a cutoff switch on my air conditioner unit? BGE's customer service reps said if I join Clean Currents I can't be in PeakRewards.
A. The customer service reps are misinformed, if in fact that's what they said. The whole point of PeakRewards is to cut electricity demand for all users, no matter whom they buy juice from.
Q. It's a 30 percent tax credit for qualified spending on weatherization, appliances etc. Does that include the labor to install the insulation, furnace or whatever it is?
A. The legislation doesn't say. In the past the IRS has said: materials only; you can't get credited for the cost of labor on these kinds of things. Perhaps they'll issue a clarification.
Q. I installed insulation and new windows in 2008. Can I take the stimulus tax credit?
A. No. The stimulus package didn't pass until February. The stuff has to be put in this year or next year.
Q. It's a $1,500 tax credit for buying qualified appliances or weatherization. Can I take a $1,500 credit once in 2009 and again in 2010 for a different project?
A. No. It's a one-time deal.
Q. How do I know if my insulation/fridge/siding/door/etc. qualifies for the tax credit?
A. Ask the contractor of the manufacturer. Manufacturers are supposed to certify that their products are eligible.
Q. Your column used the examples of spending $1,000 on insulation and taking a $300 credit. Do I have to spend at least $1,000?
A. No. It's 30 percent of any qualified expense, up until you use up the $1,500 credit (which would represent total qualified weatherization and appliance purchases of $5,000).
Comments
There could be no better investment in America than to invest in America becoming energy independent! We need to utilize everything in out power to reduce our dependence on foreign oil including using our own natural resources. Create cheap clean energy, new badly needed green jobs and reduce our dependence on foreign oil.The high cost of fuel this past year seriously damaged our economy and society. The cost of fuel effects every facet of consumer goods from production to shipping costs. It costs the equivalent of 60 cents per gallon to charge and drive an electric car. If all gasoline cars, trucks, and SUV's instead had plug-in electric drive trains the amount of electricity needed to replace gasoline is about equal to the estimated wind energy potential of the state of North Dakota.We have so much available to us such as wind and solar. Let's spend some of those bail out billions and get busy harnessing this energy. Create cheap clean energy, badly needed new jobs and reduce our dependence on foreign oil. What a win-win situation that would be for our nation at large! There is a really good new book out by Jeff Wilson called The Manhattan Project of 2009 Energy Independence Now. http://www.themanhattanprojectof2009.com
Posted by: Sherry | April 9, 2009 9:18 AM
Suggest you look into the company SSTP (stock symbol) which is the only US green company commercially capability of transforming garbage pellets into biofuel with it's side product of fertilizer (the highest grade with no pollution) via its proprietary reactor.... and to have it's fuel directly fed into the most powerful Siemens generator yielding electricity. They are now just prior to deals being disclosed. Company will break loose shortly with mind-boggling news with heavy investment from recognizable names. Major deal is just being completed in the Dominican Republic. When Obama's electrical grid is in place in about 3 years...watch out. Now this is something to read about. They have also created a “Black box” that involves a hydrogen injection system that can be fitted to cars, boats… and yes, even to the garbage to electric process. They have vehicles running with the black box at 50% greater efficiency. No other company comes close…Good things are coming to us. I clearly see us being rid of oil cartels....We've certainly have had no help from our domestic oil companies much akin to the problems we've had in the car industry
Posted by: Dr Mike Pilar | April 9, 2009 12:13 PM
Are the federal tax incentives refundable credits?
Posted by: NotableM | April 9, 2009 4:56 PM
Does the federal credit apply to the replacement of a typical heat pump (non geothermal) with a newer, more efficient one?
Posted by: Scott Mitchell | April 10, 2009 5:24 PM
I think it is fantastic how the stimulus funds are making a difference. They are being taken advantage of all the time with the installation of geothermal heat pumps to replace high energy heating and cooling systems.
Posted by: Grahm | August 5, 2009 1:17 AM
Here is some info on the current version of the tax credits: http://www.energystar.gov/index.cfm?c=tax_credits.tx_index
Posted by: Bob UU | August 5, 2009 1:36 PM
PeakRewards point is interesting,i just hope that the demand for all users will really cut-off.i think i must check more information about this.thanks for sharing anyways...nice blog.
Posted by: Scoremore | December 1, 2010 8:06 AM
If we, the taxpayer are paying for all this energy generation with corporate give-aways, why not just put it on our own roofs. The big utility companies are using our tax dollars to re-build their capacity, then sell uis the power at a higher rate. Why don't they buy their own generators. They are just robbing the taxpayers to sell us our own wind.
Posted by: Scoremore | December 13, 2010 8:46 AM