Going Green With Tax Incentives
Although there isn’t a specific government entity or legislation, which mandates building energy efficiently, there are many tax incentives on federal, state or local levels which reward green homes and make the pursuit of a eco-friendly home a worthwhile self-motivated effort. But you don’t have to go it alone, there are professional institutions which will assist you in reaching your green goals.
The official green building organization is the United States Green Building Council (USGBC), a non-profit organization and a great place to start tracking down local incentives. Search their database to learn about tax benefits for implementing LEED supported strategies in your project. You can also look at the Department of Energy’s website. The American Recovery and Reinvestment Act of 2009 extended many consumer tax incentives originally introduced in the Energy Policy Act of 2005 (EPACT) and you can learn about Home Energy Efficiency Improvement Tax Credits, Residential Renewable Energy Tax Credits as well as Automobile Tax Credits.
Another great resource is the Database of State Incentives for Renewables & Efficiency (DSIRE), another non-profit organization subsidized by the U.S. Department of Energy that will point you to local, state, federal and utility incentives for replacing your conventional systems with environmentally responsible ones.
You can also look for grants and loans to help you with initial start-up costs for building green. The U.S. Environmental Protection Agency’s website has a comprehensive list of agencies you can contact to guide you through the process.
If you are purchasing new appliances and other energy critical products, first consult with the U.S. government’s Energy Star site. The site will give you an overview of which energy-efficient products to buy, since not all Energy Star qualified products qualify for tax credits. However that should not discourage you from buying Energy Star qualified products, since although they may cost more to purchase than standard models, they will pay you back in lower energy bills within a reasonable amount of time, without a tax credit. If you purchase an energy-efficient product or renewable energy system for your home, you may be eligible for a federal tax credit. The site will also guide you through how to apply for a tax credit when you purchase a qualifying product.
Lastly, don’t forget to look for local Energy Alliances. If your search does not yield anything, then just start your own alliance. Energy Alliances are a great way to mobilize your community so that everybody can benefit from building green.
Photo by blmurch
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