The world is facing its biggest energy crisis ever. Conventional fossil fuels are depleting at an alarming rate, and we are frantically hunting for alternative energy sources. Green energy sources are being applauded, as they are kind to the environment, and to the pocket. Sustainable environmental-friendly energy sources are now being touted as the next big thing.
As the government wakes up to the call of the environmentalists, to use renewable energy sources, they are increasing the incentives available to people who make use of these resources. Solar power can be harnessed in a realistic sense today. Gadgets using solar power are now being made more attractive to prospective purchasers, who intend to use them in the residential sectors.
Federal incentives fall in to two main categories: Personal Exemption, and Personal Tax Credits.
Personal Exemption works out to a 100% subsidy, per Residential Energy Conservation Subsidiary Exclusion. Additionally, no specific technology is identified, so if you are using wind power or hydro power, you are just as eligible for the exemption as you are if using solar power. This translates into utility rebates, if you are using utilities powered by alternative energy.
So if you are going to install one of these gadgets in your dwelling, and reduce your consumption of fossil fuels and natural gas, you will benefit both the planet, and yourself. Even the dwelling unit is defined here, not just in terms of houses and apartments, but also as condominiums, mobile homes, and boats. It creates a win-win situation for the individual, the government, and the planet. So chip right in.
A personal Tax Credit is available to the tune of 30 % in the residential sector. This is divided into residential renewable energy tax credits, and residential energy efficiency tax credit.
In the renewable energy categories, the technologies are somewhat restricted to solar electric systems, solar water heaters, wind turbines, and geothermal heat pumps. The maximum incentive is also restricted to $2,000 in most cases. This tax credit will expire in 2016.
For energy efficiency, some of the gadgets considered are water heaters, furnaces, boilers, heat pumps, air conditioners, building insulation, and circulating fans used in a qualifying furnace. The equipment needs to be new, and in compliance with set guidelines. This tax credit will expire in 2010.
There are many incentives that will come into play over the next few years. To avail of them, you must keep up to date with the latest ones. We will try and help you stay informed.
Disclaimer: This article does not constitute a source of a official legal or financial advice. While we attempt to represent all data as accurately as possible, we advise you to refer to official government websites, for the most accurate and up-to-date information.