Federal Clean Energy Tax Incentives Mean Savings for Texans: How to Claim Them
The economic rescue package that Congress passed in October includes significant tax credits for energy-efficient home improvements. It also extends tax credits for businesses and for the wind, solar and biodiesel industries in order to promote the development and use of environmentally sound technologies.
Texas Impact and our members lobbied hard all year for these tax credits, and we want to make sure Texans have all the information they need to take advantage of them. The clean energy tax credits give us even more financial incentives to make energy choices that are in line with our values—choices that will save energy, save money and help care for Creation!
Some of the products for which credits are available beginning in 2009 include: energy-efficient windows, doors, insulation, roofing, and central air conditioning systems; plug-in electric cars; small wind energy systems; and solar energy systems. In addition, businesses can receive credit for some of the energy-efficient products they produce and sell, and contractors can receive credit for building energy-efficient homes.
Tips for getting these great tax credits:
1. Check the fine print before you buy and install! Make sure the product is covered, and check to make sure you’re buying at the right time. (Some credits won’t apply for improvements made it 2008 but will in 2009, for example.) The U.S. government’s ENERGY STAR® site has great information about the specifics and we encourage you to visit and read up before you buy.
2. Keep all receipts!
3. If the product has an ENERGY STAR® label, keep the label! Or you can keep the manufacturer’s certification certificate. Better yet, keep both! Documentation matters.
4. Know your tax forms: for your home, use IRS form 5695. Homebuilders should use IRS Form 8908.
Renewable Energy Tax Credits
In October 2008, Congress passed the Energy Improvement and Extension Act of 2008 (H.R. 1424). Texas Impact and our members strongly advocated the environmental renewable tax credits that are included within this legislature. While we post more information about the full reign of these renewable credits over the next few weeks, right now you can find out more about Energy Star appliances which are applicable for these renewable tax credits at the Energy Star website.
Don't "Bail" on Clean Energy!
All year we’ve been calling for the reauthorization of federal tax credits for clean energy and energy efficiency, and now the credits have one more chance to continue—as part of the Economic Stabilization Act of 2008 (the “bailout bill”).
The US Senate has included the clean energy tax incentives in the bailout bill it passed Wednesday. Both Senators Kay Bailey Hutchison and John Cornyn voted for the package.
However you feel about the bailout, it is crucial that these tax credits are passed before they expire at the end of this year. The bill will allow solar and wind projects to go forward, and will also add a significant job development enhancement to the package.
The bailout bill goes to the US House of Representatives on Friday. Many members of the House continue to oppose the bailout package, but support the clean energy tax credits and other important provisions included in the Senate bill.
We believe we should do everything we can to protect Creation and encourage green jobs creation. Please make a quick phone call TODAY to urge your House representative to support clean energy in any tax package that goes forward.
Find your congressional representative’s phone number or find out who represents you
Sample phone message:
"I'm calling to urge Congressmember _______________________ to extend the tax incentives for renewable energy and energy conservation. Please make sure these job-creating incentives are not allowed to expire, and are included in any tax package that goes forward."
Other points you may want to add:
* The residential tax incentives included will help average homeowners
* The clean energy tax credits will create 1.2 million green jobs
* Without the tax credits, wind, solar, and other projects currently underway will be stalled
Read an op-ed on the importance of the clean energy tax credits
