Energy Incentive and Tax Credits
Efficiency Vermont Incentives
The American Recovery and Reinvestment Act of 2009 signed on February 17, 2009, by President Obama has made significant changes to homeowner tax credits for specified energy-efficient home improvements. The tax credit for qualifying energy improvements such as the installation of qualifying Rinnai tankless water heaters, York Heating and Air Conditioning, and Buderus Boilers has been modified from $300 to 30% of the full purchase and installation price up to a maximum credit of $1500. In addition these tax credits for 2009 have been extended through Dec. 31, 2010.
For more information check out the Efficiency Vermont website.To download the Efficiency Vermont rebate form click here.
Burlington Electric Incentives
BED offers financing options to customers with electric heat who convert to a less-expensive source, such as natural gas or oil. This program is available for both owner-occupied and rental properties. More than 1,800 BED customers have taken advantage of this program
For more information check out the Burlington Electric website.Vermont Gas Incentives
Vermont Gas Systems strong belief in energy efficiency is a key component of the companyÕs operating principles. As part of its commitment to the efficient use of energy, Vermont Gas has offered Demand-Side Management (DSM) programs to both residential and commercial customers since 1992. Collectively known as the Energy Extenders.
For more information check out the Vermont Gas website.Federal Energy Tax Credits
The upgrade or installation of efficient heating, air conditioning, or water heating equipment can save you money on your 2009 taxes. 2009 signifies the return of federal tax credits for residential heating, AC or water heating under the Energy Policy Act of 2005, which expired at the end of 2007. This successful program was extended under the "Emergency Economic Stabilization Act of 2008". The act re-establishes tax credits for purchasing and installing energy efficient home improvements, such as a Tankless Water Heater.
For more information on the bill, check out the U.S. Department of Energy website.What is a tax credit?
A Tankless Water Heater Tax Credit is not received when you buy the product, like an instant rebate. A Tax Credit on Water Heaters is claimed on your federal income tax form at the end of the year. The credit then increases the tax refund you receive or decreases the amount paid in.
Tax credits vs. tax deductions.
In general, a tax credit is more valuable than a similar tax deduction. A tax credit reduces the tax you pay, dollar-for-dollar. Tax deductions, such as those for home mortgages and charitable giving, for example, lower your taxable income. If you are in the 30 percent tax bracket, your income tax is reduced by 30 percent of the value of a tax deduction. But a tax credit reduces your federal income tax by 100 percent of the amount of the credit.
For more information on Federal Tax Credits for Energy Efficiency, click here.