Taxation and Green Power
Did you know that nearly 30% of all energy conservation house upgrade costs [heat, cool, water, spring/well development, insulation, windows, doors, biomass (wood) stoves], and nearly 30% of all home power costs and installations [solar panels, wind, and related equipment like batteries, wires, breakers, etc.], actualize as credits
toward your federal income tax? Click here for details.
In Montana, as credits against our state income tax, we have forms ENRG-B [Alternative Energy] and ENRG-C [Energy Conservation] dedicated to exactly this purpose. There is a maximum credit for at least one of these items [between $5 and $6k, I think?] you can use in a given year; however, any extra carries forward!
So, when conducting a feasibility study or simple budget of whether or not items like wind, solar, solar hot water, on-demand water heat, and spray-in insulation will pay off over time vs. reductions in heating bills, remember these two important points:
1) Up to 30% the cost of the ‘green’ upgrades, and up to 30% off the cost of alternative power installations count ADDITIONALLY in your favor [in the form of tax credits]
2) Heating and utilities bills operate on an average national increase rate of 4%
Do the math. Lower your 2010 state and federal income taxes, future
utilities bills, and spend your cash on self-sustainability! -s
