Green Tax Incentives for Another Year—at least.
So what does a $700 billion bailout buy for you now days? Well…the 2008 bailout paid for some executive bonuses. It also ensured solvency for our nation’s top financial institutions, of which we’re still waiting on a return of the favor. But in typical Washington bureaucratic practice, it also included extras (or riders) on the bill where pork spending is distributed in a good-old-boy, come to the trough and get some mentality. Among some of the bacon that congress leveraged out of its citizens were tax breaks for manufacturers of “certain wooden arrows used by children”, cost recovery for race track owners and credits for rum imported from Puerto Rico. Yet, this time they seemed to have gotten something right. Specific notation in the “Emergency Economic Stabilization Act of 2008“, Public Law 110-343 of October, 2008 grants the spirit of EPAct life for yet another year.
In 2005, President Bush signed into law the Energy Policy Act of 2005 or EPAct. This simple gesture finally put our nation’s money where its mouth was when it came to green energy investment. It was a pioneering move by our federal government that encouraged citizens to take up the ‘green’ cause while keeping a little coin in their pockets. Some tax incentives were in the form of credits for qualifying commercial, government and private business. Scheduled for termination at the end of 2008, this 11th hour rescue saved a bit of seldom seen, good legislation.
Renewed for another year, these popular tax incentives reward those of us that make the effort to invest in manufacturing and exploration of alternative energy sources and construction of energy efficient homes and business. The legislation continues a tax deduction of up to $1.80 per square foot for new or existing buildings constructed or renovated to save at least 50 percent on the energy costs on HVAC, water heating, or interior-lighting systems in buildings that meet the efficiency guidelines in ASHRAE 90.1-2001. Though voluntary, most states have adopted the standard as their mandatory building energy code. There are also partial deductions of $0.60 per square foot (psf) are available for improvements to one of the three systems — including lighting — that reduces HVAC, water heating or lighting energy use by 16.6 percent.
The list doesn’t end there. It covers a wide assortment of actions that encourage and reward satellite businesses that promote green energy such as alternative fuel transportation and security.
So for all of you builders, manufacturers and green market niche operators reading this post, enjoy the lime light–as well as the cash. Your government loves you, at least for another year.
Here are a few links that will help answer any questions:
http://www.energy.gov/media/HR_1424.pdf
http://www.energy.gov/taxbreaks.htm
http://www.energystar.gov/index.cfm?c=products.pr_tax_credits
Public Law 110-343 - Oct. 3rd, 2008
Thanks for reading!
John Maclay
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