Nelson: Tax Credits Increase Energy Security
NELSON: TAX CREDITS INCREASE ENERGY SECURITY
Tax credits supported by Nebraska's Senator Ben Nelson go into effect this week, reducing energy costs for America's families and businesses. The various tax credits were developed to increase energy efficiency and reward purchasers of energy efficient appliances and products, as well as fuel efficient vehicles such as hybrids.
"National security is already a household term and energy security is about to become one, too," said Nelson. "Providing tax credits to promote energy efficiency is a smart start to defending our nation's energy security."
The tax credits could potentially reduce an energy-efficient consumer's 2006 federal tax bill by thousands of dollars. For example, the tax credit for the most fuel-efficient car is $3,400.
Specific tax benefits for homes include:
$50 for purchasing an advanced main air circulating fan;
$150 for installing a highly efficient furnace or boiler;
$200 for installing energy efficient windows;
$300 for purchasing a highly efficient central air conditioner, heat pump or water heater;
30 percent, or up to $2000, for the purchase of solar water-heating equipment (this does not apply to equipment used to heat swimming pools or hot tubs).
Specific tax benefits for businesses include:
30 percent tax credit for the installation of qualifying solar equipment on buildings;
Business tax credits for companies that build highly energy efficient homes;
Credits for companies that manufacture energy-efficient appliances such as dishwashers, clothes washers and refrigerators.
The energy efficiency tax credits were signed into law in August 2005 as part of the landmark energy bill. The complete bill also included provisions to boost domestic energy production and improve U.S. energy independence by means such as ethanol.
For more information on how the energy efficiency tax credits affect you, please consult a tax professional or visit www.energy.gov/taxbreaks.htm to learn more about the Department of Energy's programs and initiatives.
http://bennelson.senate.gov/news/details.cfm?id=250329&&