By TIM RONALDSON | Business Trends
Mother Nature eases her grip in October, a time that signifies the opening of windows and the switch from air conditioning to air circulation.
But it is not a time to simply enjoy cool breezes once again.
October is Energy Awareness month, and in addition to educational programs on the benefits of reduced energy consumption, the federal and state governments are offering tax credits for energy-efficient improvements in both the home and at work.
Mark Hendrix, executive vice president in charge of the Lexington business at Burkett, Burkett & Burkett CPAs, says energy efficiency is a great example of how business owners can use their individual tax return to offset business income. Most of the corporate energy credits are for big business, Hendrix said, such as for the installation of fuel cell power plants, solar energy equipment or stationary microturbine power plants.
But on the individual side, there are plenty of practical offerings available.
Homeowners can qualify for a 30 percent tax credit, up to a maximum of $1,500, toward the purchase of energy-efficient windows, doors, insulation, and heating and air conditioning units. What confuses some people, Hendrix said, are that these credits were available in 2007, went away in 2008, and are now back and good through 2010.
Tax credits are also available for “plug-in electrical drive vehicles,” or electric cars. Newly purchased vehicles that fit into this category can qualify for a $2,500 to $7,500 tax credit, depending on the battery capacity, Hendrix said. The downside, though, is that such a purchase won’t have an effect on 2009 taxes; the vehicles must be purchased after Dec. 31.
Similarly, a 10 percent tax credit, up to $4,000, is available for kits that convert vehicles to electric power.
Hendrix believes the Obama Administration favors electric vehicles over hydrogen because of its availability, and as such, predicts that more such tax credits and incentive programs related to electric vehicles could be on the way.
A 30 percent tax credit that helps pay for qualified residential alternative energy equipment, such as solar hot water heaters, geothermal heat pumps and wind turbines, is also available for individuals, according to the IRS.
Some business-specific energy tax credit programs, as created under the American Recovery and Reinvestment Act of 2009 include:
• Credits for energy-efficient commercial buildings that reduce annual energy and power consumption by 50 percent
• Credits for the construction of new energy-efficient homes or developments that meet Energy Star criteria
• Grants available instead of claiming either the energy investment tax credit or the renewable energy production tax credit for property placed in service in 2009 or 2010
• A temporary increase in credit for alternative fuel vehicle refueling property
Locally, South Carolina Electric & Gas has proposed nine energy efficiency programs to the Office of Regulatory Staff and the Public Service Commission, seven focused on residential customers and two on the commercial/industrial sector. The programs include rebates and incentives, consumer education and in-home services.
Pending approval, SCE&G said it would begin rolling out the services in the early to middle part of 2010.
As the U.S. Environmental Protection Agency says, “October is a great time to get started on the path to energy savings.”
Mon, Oct 5, 2009 at 9:57 am
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