On July 29, Congress passed the country’s first energy bill
in 13 years promising to reward homeowners for making energy-efficient
improvements around the house.
After a years-long congressional stalemate, Congress passed a $12.3
billion, 10-year energy reform package that aims to refocus the
country’s energy priorities by promoting cleaner energy and
more conservation.
The 1,724-page bill promises myriad tax credits to consumers, homeowners,
homebuilders and manufacturers who buy or make energy-efficient
products for the home, starting January 1. Some examples:
• U.S. manufacturers will earn tax credits for bumping up production
of super-efficient appliances like dishwashers, refrigerators and
washing machines. The bill’s authors assume the manufacturers
will pass part of the windfall on to customers in the form of reduced
prices, which will encourage them to select the most energy-efficient
models.
• Federal programs that allow states to offer rebates to consumers
who buy energy-efficient appliances will expand.
• Homeowners who buy fuel-efficient furnaces or air conditioners
could qualify for rebates of up to $150 plus 10% of the cost of
making the house more efficient by switching, for example, to more
efficient windows.
• Builders of energy-efficient homes could get up to $2,000
per house as a tax credit in 2006 and 2007.
• Homeowners who install solar energy equipment, such as water
heaters and even rooftop panels, can claim a 30% tax credit, with
a limit of $2,000.
• The largest credits—up to $30,000—will go to drivers
who buy hybrid cars and trucks, which operate on a blend of gas
and electricity.
Kentucky Association of
Electric Cooperatives, Inc.
4515 Bishop Lane * Louisville, KY 40218
502-451-2430 * FAX: 502-459-3209 Terms of Use
