Obama’s making green energy a priority. As part of his proposed three-year economic stimulus plan, $20 billion in energy tax credit will go to the renewable energy sector. Federal funds will further the development of solar and wind industries, consumers and small businesses will benefit from tax breaks, and many domestic jobs will be created in the process. In creating a compromise bill Congress kept much of the green energy funding in the original bill.
The plan is estimated to double renewable energy production and to produce 460,000 new job opportunities in the renewable energy sector. By 2025, 25 percent of US electricity is anticipated to derive solely from renewable energy sources.
Some green energy highlights:
Homeowners that “weatherize” their homes will qualify for a tax credit equal to 30 percent ($1,500 maximum) of what they spend on energy-efficient improvements, such as installing energy-efficient furnaces and hot water boilers.
Homeowners also qualify for a 30 percent tax credit (no maximum) when they purchase solar water heating equipment, wind energy equipment and geothermal heat pumps. The credit extends to all property costs, including labor and installation.
Households will receive a $1000 emergency energy rebate from a windfall profits tax on oil company profits.
The alternative refueling property tax will increase from 30 percent to 50 percent of the costs of pumps (from $30,000 maximum to $50,000 maximum).
Renewable energy facilities can temporarily claim a 30 percent investment tax credit as opposed to the production tax credit payable over a 10-year period.
$1.6 billion in bonds will finance alternative energy facilities, including: wind, biomass, geothermal, small irrigation, hydro power, landfill gas, ocean currents and trash burning facilities.
Find out more about Obama’s plan here. What’s the bottom line? Improve your energy-efficiency and save money! But, like all good offers, the tax breaks are for a limited time only (one to three years).
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