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Showing posts with label Tax Credits. Show all posts
Showing posts with label Tax Credits. Show all posts

4.06.2011

Can I Get a Tax Credit for That?

...for consumers making energy-efficient choices, tax season might help you keep a little extra cash in your wallet. In addition to lowering your energy bills at home and on the road, energy-efficient products eligible for the federal tax credits actually lower the amount of federal income taxes that you must pay Uncle Sam.

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taxes
Author(s): 
Kissairis Munoz
No one likes filling out their taxes. But, for consumers making energy-efficient choices, tax season might help you keep a little extra cash in your wallet. In addition to lowering your energy bills at home and on the road, energy-efficient products eligible for the federal tax credits actually lower the amount of federal income taxes that you must pay Uncle Sam.

You might be eligible for a federal income tax credit if…

  • You’ve purchased fuel-efficient hybrid, electric or diesel vehicles
  • You’ve made certain energy efficiency upgrades in your home

What is a tax credit?

You don’t receive an income tax credit when you buy the product, like an instant rebate. Instead, you claim the credit on your federal income tax form at the end of the year. The credit will increase the tax refund you receive or decrease the amount you owe the government.

What’s the difference between a credit and a deduction?

A tax credit is more valuable than a tax deduction of the same amount. A tax credit reduces the tax you pay, dollar-for-dollar. Tax deductions — such as those for home mortgages and charitable giving — lower your taxable income.

For instance, if you are in the highest 35% tax bracket, a tax credit will reduce your federal income tax by 100% of the credit amount. With a deduction, the income tax you pay is reduced by 35% of the deduction’s value.

What about other incentives?

In addition to the federal tax credits, consumers in some areas of the country also will be eligible for utility, state or local rebates and tax incentives for homes, vehicles and equipment. Check out the DSIRE database of state incentives or contact your state energy office or local utility.

Which year's credits do I claim?

The credit value and technical criteria for the home improvement credits depend on when that improvement was installed. If you purchased a product in 2010, but didn't install it until 2011, the 2011 criteria apply.

Where do I find these credits in the tax code?

  • Vehicle credits: The hybrid, "lean-burn" diesel, and alternative fuel vehicle credits are part of the “alternative motor vehicle” credit in section 30B of the tax code. Electric vehicles are in section 30D, the "new qualified plug-in electric drive motor vehicles" credit.
  • Home improvements credits: Formally called the “nonbusiness energy property” credit, it is in section 25C of the tax code
  • Geothermal heat pump, solar equipment and fuel cells: Formally called the “residential energy efficient property” credit, they are in section 25D of the tax code.

Are there tax credits available to businesses?

A commercial building retrofit credit is available though, unlike the residential credits, it is based on whole-building performance levels. The good news is that businesses also can claim the vehicle tax credits.

Businesses that build or manufacture certain other energy-efficient consumer products (see below) also are eligible for federal income tax credits. While these credits do not go directly to consumers, they could reduce the cost to consumers of:
  • New energy-efficient homes through 2011 and
  • Energy-efficient refrigerators, clothes washers and dishwashers through 2011.

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9.30.2010

Renewable Energy Rebates-Ameren UE-Federal Tax Incentive

Ameren UE Renewable Energy Rebate Program

Recently I was asked:
  • "Why does Ameren UE buy back the electricity created by Renewable Energy System on my House?" 
When I directed the question to Ms L.Cosgrove who handles the Local Ameren UE Renewable Energy Department.  She replied:
  •    "AmerenUE provides the MO Solar Rebate in response to Missourian’s passing Proposition C back in November, 2008[ii],[iii]"

In a nutshell it seems to me that Ameren UE will either have to build Renewable Energy Producing Systems or Purchase the Electricity that is made from Residents and Businesses to comply with the Law. 

Which means that Ameren has a Stake in any Renewable Energy Sytem that produces Electricity and is Interconnected utilizing Net Metering to our / their Electircal Grid here in the St Louis Area. 

Good News for all those who would like additional Monetary Incentives for Installing RE (Renewable Energy) Sytems.

The Ameren Rebate and the Federal Tax Incentive can add up to as much as 2/3 of the cost of the RE System. 




[i] Lisa M. Cosgrove | Renewables Specialist  | 1901 Chouteau Avenue, MC 611 | St. Louis, MO 63103
314-554-2649 | fax 314-206-1387 lcosgrove@ameren.com   

[iii] 2008 Initiative Petitions
Approved for Circulation in Missouri

Amendment to Chapter 393 of the Revised Statutes of Missouri, Relating to Renewable Energy, version 4, 2008-031

THE PROPOSED AMENDMENT

Be it enacted by the people of the state of Missouri:
Chapter 393, RSMo, is amended by repealing sections 393.1020, 393.1025, 393.1030, and 393.1035, and substituting therefor three new sections to be known as sections 393.1020, 393.1025 and 393.1030, to read as follows:
393.1020. Sections 393.1025 to 393.1030 shall be known as the Renewable Energy Standard.
393.1025. As used in sections 393.1020 to 393.1030, the following terms mean:
 1. "Commission", the public service commission;
 2. "Department", the department of natural resources;
 3. “Electric utility”, any electrical corporation as defined by section 386.020;
 4. "Renewable energy resources", electric energy produced from wind, solar thermal sources, photovoltaic cells and panels, dedicated crops grown for energy production, cellulosic agricultural residues, plant residues, methane from landfills or from wastewater treatment, clean and untreated wood such as pallets, hydropower (not including pumped storage) that does not require a new diversion or impoundment of water and that has a nameplate rating of 10 megawatts or less, fuel cells using hydrogen produced by one of the above-named renewable energy sources, and other sources of energy not including nuclear that become available after the effective date of this section and are certified as renewable by rule by the department; and
 5. "Renewable energy credit" or “REC”, a tradable certificate of proof that one megawatt-hour of electricity has been generated from renewable energy sources.
393.1030.1. The commission shall, in consultation with the department, prescribe by rule a portfolio requirement for all electric utilities to generate or purchase electricity generated from renewable energy resources. Such portfolio requirement shall provide that electricity from renewable energy resources shall constitute the following portions of each electric utility’s sales:
(a) No less than two percent for calendar years 2011 through 2013;
(b) No less than five percent for calendar years 2014 through 2017;
(c) No less than ten percent for calendar years 2018 through 2020; and
(d) No less than fifteen percent in each calendar year beginning in 2021. 

At least two percent of each portfolio requirement shall be derived from solar energy. The portfolio requirements shall apply to all power sold to Missouri consumers whether such power is self-generated or purchased from another source in or outside of this state. A utility may comply with the standard in whole or in part by purchasing RECs. Each kilowatt-hour of eligible energy generated in Missouri shall count as 1.25 kilowatt-hours for purposes of compliance.
2. The commission, in consultation with the department and within one year of the effective date of sections 393.1020 to 393.1030, shall select a program for tracking and verifying the trading of renewable energy credits. An unused credit may exist for up to three years from the date of its creation. A credit may be used only once to comply with this act and may not also be used to satisfy any similar non-federal requirement. An electric utility may not use a credit derived from a green pricing program. Certificates from net-metered sources shall initially be owned by the customer-generator.  The... continues on web site 

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