Green Rebates and Taxes      

It is a great time to upgrade to energy efficient appliances, hot water heaters and more. Right now there are many different kinds of tax credits and rebates available designed to get people to become more energy efficient. On the national level for example, there credits and rebates for replacing windows, installing solar systems and buying a hybrid car. On the state level there are similar rebates along with incentives from your local utility. Not only can you save money with tax credits on home improvements, you also benefit from lower home energy bills, increased indoor comfort, and reduced air pollution.

Here are examples of rebates that some utility companies giving:

  • Clothes washer - $35 to $75
  • Dishwasher - $30 to $50
  • Refrigerator/freezer recycling - $35
  • Water heater - $30
  • Air conditioner - $50
  • Duct sealing incentive – up to $600
  • Furnace - $200/$300
  • Fan - $100

Solar Energy Systems & Fuel Cells

There are tax credits for 30% of the cost of qualified solar water heating and photovoltaic systems, up to $2,000. This is for systems that have been set up between January 1, 2006 and December 31, 2008. The tax credits also apply for installing qualified fuel cell and micro turbine systems - 30% of the cost up to $500 per 0.5 kW of capacity maximum) Efficient Cars & Hybrid Vehicles

You can get tax credits when you buy a hybrid gasoline-electric, diesel, battery-electric, alternative fuel, and fuel cell vehicles. These credits are available for vehicles purchases between December 31 2005 and December 31, 2010. So, in addition to the money you will save with the tax credit, you save additional money on gas! For more information see Hybrid Vehicles page.

Net Metering

Net metering is for people who have solar or wind systems and generate more energy than they can use. With net metering, any extra energy that is produced can “banked”, by having your electricity meter spinning backwards. This will bank the electricity until it is needed. Every utility has different policies regarding net metering, so be sure to check with your local utility. Right now here are 35 states that have net metering policies. For more detailed information on Federal and State Tax Incentives, is a comprehensive source of information on state, local, utility and federal incentives that Database of State Incentives for Renewable and Efficiency (DSIRE) promote renewable energy and energy efficiency.

Federal Tax Credit Not Renewed for Some Home Improvements The Energy Independence and Security Act of 2007 did not extend the tax credits (up to $500) for energy-efficient home improvements. The improvements had to have been completed by the end of 2007 in order to qualify. For more information about Tax Credits: http://www.energystar.gov/index.cfm?c=products.pr_tax_credits

* Be sure to consult with your tax professional to make sure these apply to you.