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Unfortunately, it’s easy
to get confused with so
many options for green
financial assistance.
In fact, Matt Siegel,
green building director
of the Western North
Carolina Green Building
Council (WNCGBC), often
receives phones calls
from unaware consumers
wondering what’s
offered. “Most people
say, ‘Hey, I’m
renovating my house —
what’s available?’ ”
says Mr. Siegel. And
then, the education
process begins.
Are
you also
eager to know
what you’ll get from the
government when you go
green? Have no fear,
Carolina Living is
here to outline your
opportunities!
Quick Links:
North Carolina
Incentives
South Carolina
Incentives
Important Reminders
Federal Incentives
Some green incentives
are available across the
nation because they are
offered by the federal
government, which offers
two major tax credits
along with a mortgage
incentive and subsidy
tax exemption. The tax
credit you are eligible
for depends on whether
you are installing an
energy efficient system
or a renewable energy
system. The personal
tax exemption and
government-backed
mortgage are only
available if you’re
installing a renewable
energy system.
Energy Efficient Tax
Credit
The
residential energy
efficient tax credit is
a personal tax credit
worth 30 percent of the
cost of eligible energy
efficient products.
Established in 2005, the
original credit was
adjusted to include more
systems and currently
expires on December 31,
2010. The tax credit
applies to owners of
private residential
homes that incorporate
approved energy
efficient technology.
According to the DSIRE
Website, this equipment
includes new
“water heaters,
furnaces, boilers, heat
pumps, air conditioners,
insulation, windows,
doors, roofs,
circulating fans used in
a qualifying furnace and
stoves that use
qualified biomass fuel”
that meet the efficiency
standards recommended by
the government. To
obtain the credit,
include your upgrade
with your tax
documents. However, you
can only receive up to
$1,500 in tax credits
within the two-year
period, and labor costs
are not included in the
total cost from which
the 30 percent is
taken. The good news is
that all
homeowners are
potentially eligible to
save up to $1,500 in two
years!
Renewable Energy Tax
Credit
The
residential renewable
energy tax credit is
virtually the same as
the first credit. The
differences lie in that
this credit applies to
systems that offer
renewable energy,
including “solar water
heat, photovoltaics,
wind, fuel cells,
geothermal heat pumps,
and other solar electric
technologies,” says the DSIRE Website. Also,
systems installed before
2009 are subject to a
maximum credit allotment
that varies depending on
the type of system.
Those installed in 2009
or 2010 do not have the
30 percent credit cap.
And, as before, eligible
technologies are
required to meet
government renewable
technology requirements.
Energy Efficient
Mortgages
The
federal government also
backs mortgages that pay
for the measures to make
a new or existing home
energy efficient. These
energy efficient
mortgages, or EEMs as
they are called, are
given if you plan to
build or buy a qualified
private residence.
Again, many Americans
could potentially get an
EEM, as the program
“allows borrowers who
might otherwise be
denied loans to pursue
energy efficiency
improvements, and it
secures lenders against
loan default,” says the
DSIRE Website.
EEMs are available in
different loan amounts
depending on which
entity backs the
mortgage. The Federal
Housing Authority offers
an EEM for up to the
total savings provided
by the renovations. The
Department of Veterans
Affairs sponsors an EEM
of up to $6,000
specifically for
military personnel and
veterans to use with
other VA loans.
Private lenders, such as
those that have
partnered with Energy
Star, also offer EEMs,
but these mortgages are
not backed by the
federal government.
Again, EEMs vary
depending on who backs
the loan, as well as
depending on the
location of the
qualified home. Each
loan is subject to its
individual
circumstances.
Energy Conservation
Subsidy Exclusion
The
last incentive for going
green provided by the
federal government is
the residential energy
conservation subsidy
exclusion. This tax
credit applies to
subsidies, or monies
received, for energy
conservation efforts
from public utility
companies. The term
“public” means that your
utility company must not
be operated by any
government agency for
your subsidy to be
qualified. If you
receive a rebate or
reduction in your bill
from your utility
company because you take
part in that company’s
energy conservation
curriculum, you do not
include it in your gross
income on your taxes.
It is identified in a
separate section of your
tax documents. Then, if
it is eligible for the
exclusion, your subsidy
is not taxed and you
save money!
Explore additional
financial incentives and
important reminders:
North Carolina
Incentives
South Carolina
Incentives
Important Reminders
About the Author
Maresa Whitehead
graduated from Columbia
College in May 2009 with
a degree in English.
She worked as an intern
for Carolina Living
during her senior year.
She plans to begin
graduate school in 2010
for a degree in creative
writing, and she aspires
to teach college-level
creative writing while
publishing her own
creative work on the
side. Currently, Maresa
resides in her hometown
of Lexington, S.C., with
her two cats and her
horse.
Resources
·
DSIRE
·
Matt
Siegel, Green Building
Director
Western North Carolina
Green Building Council
·
Trish
Jerman, Manager of
Policies and Programs
South Carolina Energy
Office
·
N.C. Solar
Center
Fact Sheet on
Residential Tax Credits,
Federal and State of
N.C
·
N.C.
GreenPower
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