Oregon Tax Credits Blog

Archive for the ‘Energy Tax Credit’ Category

“Energy produces energy“, realizing the importance of energy and wanting the industry to grow, the U.S. House Ways and Means Committee approved $20 billion in energy tax credits and associated financial inducements that are part of the Obama’s initiative to revitalize the American financial system. The credit will give a lot of space to the energy industry and offer room to grow while giving a real boost to the American economy.

The legislation’s energy tax breaks would benefit the wind and solar energy industries, encourage energy-efficiency improvements to existing homes and help service stations recoup their costs for installing alternative energy pumps.

A tax credit is more important than a comparable tax deduction as a credit reduces tax dollar for dollar, while a deduction only eliminates a proportion of the tax that is payable. Customers can enumerate purchases on their federal income tax form, which will cut down the total amount of tax they owe the government. President Obama’s vision to facilitate the energy industry by tax credit is a real morale booster for it to grow up and produce. The long standing extension of the renewable energy production credits, which would cost the government $13.1 billion over 10 years, accounts for more than half of the stimulus package’s $20 billion in energy tax breaks and financial incentives being considered by the committee.

Home Energy Efficiency Improvement Credits, Residential Renewable Energy Credits, Automobile Credits and other credits towards taxes are available by the legislation. Customers who acquire particular products, such as energy-efficient windows, insulation, doors, roofs, and heating and cooling equipment in existing homes can be given a tax credit for 30% of the cost, up to $1,500, for improvements “placed in service” starting January 1, 2009, through December 31, 2010. Customers who install solar energy systems (including solar water heating and solar electric systems), small wind systems, geothermal heat pumps, and residential fuel cell and micro turbine systems can receive a 30% tax credit for systems placed in service before December 31, 2016; the previous tax credit cap no longer applies. Individuals and businesses who buy or lease a new hybrid gas-electric car or truck are eligible for an income tax credit for vehicles “placed in service” starting January 1, 2006, and purchased on or before December 31, 2010. The amount of the credit depends on the fuel economy, the weight of the vehicle, and whether the tax credit has been or is being phased out. Hybrid vehicles that use less gasoline than the average vehicle of similar weight and that meet an emissions standard qualify for the credit.
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