While the Energy Policy Act of 2005 will help address our long-term energy challenges, many provisions will help American families save energy—and money, too!
Provisions directed at American consumers include:
In your home
- Consumers can receive a credit of up to 30 percent of the cost, or up to $2,000, for installing solar-powered hot-water systems used exclusively for purposes other than heating swimming pools and hot tubs.
- Consumers can receive tax credits up to $500 on the amount they spend to upgrade thermostats, caulk leaks or stop energy waste.
- Consumers can receive up to $200 credit for installing new exterior windows.
- Consumers can receive up to $300 credit for purchases of a highly efficient central air conditioner, heat pump or water heater.
- Consumers can receive up to $150 for installing a highly efficient furnace or boiler.
- A new provision provides a 10-percent investment tax credit for expenditures to improve building envelopes. This provision allows credits for purchases of advanced main air circulating fans, natural gas, propane or oil furnaces or hot water boilers and other qualified energy-efficient property.
- Tax credits for contractors who build energy-efficient homes and manufacturers who make energy-efficient appliances could lower prices for consumers.
For your car
- Starting in 2006, buyers of hybrid-car and advanced lean-burn technology vehicles will be eligible for tax credits ranging from $1,700 to $3,000. This credit involves two components: hybrids that save the most fuel compared with 2002 models and the vehicle's estimated lifetime fuel savings.
- The amount of credit for purchasing a fuel-cell vehicle is determined by a base credit amount that depends upon the vehicle's weight class and, in the case of automobiles or light trucks, an additional credit amount that depends upon the rated fuel economy of the vehicle compared to a base fuel economy.
- For fuel-cell-powered vehicles weighing less than 8,500 pounds, for instance, the base credit will be $8,000. Heavier vehicles will get bigger credits.
- Credits are offered for cars and light trucks that are more fuel-efficient than 2002 models. (A tax credit gives the taxpayer a dollar-for-dollar reduction in Federal taxes.)
- A provision permits taxpayers to claim a 30-percent credit for the cost of installing clean-fuel vehicle refueling property to be used in the taxpayer's trade or business or installed at the taxpayer's principal residence.
Under the provision, clean fuels are considered any fuel at least 85 percent of the volume that consists of ethanol, natural gas, compressed natural gas liquefied petroleum gas, and hydrogen and any mixture of diesel fuel and biodiesel containing at least 20 percent biodiesel. This provision is effective for property placed in service between Dec. 31, 2005 and Jan. 1, 2010.
Note: Originally printed in Western's employee publication, Sept. 9, 2005.
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