Residential Energy Credits That Could Change the Usa
After a period in the 1970's where crude oil production reached its peak there was an energy crisis. In 1970 71 percent of the United States energy production was oil and natural gas. The government decided to provide taxpayers with an energy credit known as the Energy Act of 1978. The Energy Act of 1978 was intended to influence taxpayers to use other means of energy and conserve the limited resource of oil and gas. By 1979 a fourth of all energy domestic consumption in the United States was used for residential purposes. Americans can conserve energy and reduce their costs by insulating and constructing improvements on residences. Likewise our oil shortage today leaves Americans with the option to find other means of energy or pay the outrageous oil prices. The tax energy credit that was available in 2006 and 2007 were very similar to the credit enacted in 1978. The only question that needs to be answered is why the government has not renewed the credit for 2008 and the years proceeding 2009?
The Energy Act of 1978 provided a credit of expenditures made on or after April 20, 1977. The credit ceased for expenditures made after December 31, 1985 but could be carried forward until 1987. In 2006 and 2007 there was a similar credit for expenditures made on a US residence in the respective taxable year. Both credits were allowed for energy-conserving components installed in the primary residence of a taxpayer. For the credit that began in 1978 instillation such as caulking and weather-stripping of exterior doors and windows, clock-operated thermostats, and equipment that helped furnaces run more efficiently; fifteen percent of the expenditure was allowed up to the maximum credit of three hundred dollars. A maximum credit of five hundred dollars was allowed in 2006 and 2007 at ten percent of the expenditure costs of instillations reducing heat loss or gain. Instillation expenditures included exterior windows, exterior doors, and metal roofs, advanced main air circulation fans, natural gas, propane, or oil furnace or hot-water boiler. The instillation expenditures not only reduced costs on utility bills they conserved our natural resources.
Furthermore the credit applied to renewable energy sources. The credit beginning in 1978 included solar energy, energy from geothermal deposits, and wind energy expenditures. The costs incurred for expenditures of heating, cooling, or providing hot water were applicable for a maximum credit for 2,200 dollars, thirty percent for the first 2,000 dollars and twenty percent of the next 8,000 dollars. Expenditures that apply to the tax credit for 2006 and 2007 receive thirty percent of qualified solar panels and solar water heating equipment. A credit was allowed for each kind of expenditure with a maximum credit of 2,000 dollars. Another credit was available for qualified fuel cell power plants at thirty percent of costs up to 500 dollars per .5 kilowatt of capacity. While the credit's dollar amounts may differ from the years stated the government wants to influence how we use our limited resources and provide rewards for alternative energy means.
As 2008 comes to a conclusion the residential energy credit has not been renewed. Our economy is in a recession, they price of fuel skyrocketed during the year, and the value of homes are rapidly declining. The residential energy credit could have enticed taxpayers to acquire other means of energy while increasing the value of their residences and creating jobs. In 1979 when America was hardly in a crisis as we are today there were over 4.8 million returns that contained residential energy credits totaling an amount over 480,000 dollars before any limitation. The residential energy credit should be available in every taxable year to influence what kind of energy Americans consume. Our future generations need a planet that is not completely depleted and guidance on which energy consumption will save our planet.
The residential energy credit will appear again in 2009. In 2009 a five hundred dollar maximum credit is placed on insulations, exterior windows and doors, non-solar water heaters, and certain heating and cooling equipment. The credit for tax years 2006, 2007, 2009 has a combined maximum of 500 dollars; where as the credit beginning in 1978 had a maximum credit of 300 dollars per year and a carryforward approach. There will be credits for solar water heating and photovoltaic systems. The tax credit for solar water heating systems will be thirty percent of expenditure costs with a maximum credit of 2,000 where as the credit for photovoltaic systems will not have a maximum credit. Thirty percent of cost of wind systems will apply for a credit up to 500 dollars for each .5 kilowatts capacity with a maximum credit of 4,000 dollars. Also fuel cells will receive thirty percent of costs for the system up to 1,500 for each .5 kilowatt capacity. It is clear that our environment is in need of preserving natural resources and our government must continue to influence taxpayers to invest in alternative energy resources.
The Energy Act of 1978 provided a credit of expenditures made on or after April 20, 1977. The credit ceased for expenditures made after December 31, 1985 but could be carried forward until 1987. In 2006 and 2007 there was a similar credit for expenditures made on a US residence in the respective taxable year. Both credits were allowed for energy-conserving components installed in the primary residence of a taxpayer. For the credit that began in 1978 instillation such as caulking and weather-stripping of exterior doors and windows, clock-operated thermostats, and equipment that helped furnaces run more efficiently; fifteen percent of the expenditure was allowed up to the maximum credit of three hundred dollars. A maximum credit of five hundred dollars was allowed in 2006 and 2007 at ten percent of the expenditure costs of instillations reducing heat loss or gain. Instillation expenditures included exterior windows, exterior doors, and metal roofs, advanced main air circulation fans, natural gas, propane, or oil furnace or hot-water boiler. The instillation expenditures not only reduced costs on utility bills they conserved our natural resources.
Furthermore the credit applied to renewable energy sources. The credit beginning in 1978 included solar energy, energy from geothermal deposits, and wind energy expenditures. The costs incurred for expenditures of heating, cooling, or providing hot water were applicable for a maximum credit for 2,200 dollars, thirty percent for the first 2,000 dollars and twenty percent of the next 8,000 dollars. Expenditures that apply to the tax credit for 2006 and 2007 receive thirty percent of qualified solar panels and solar water heating equipment. A credit was allowed for each kind of expenditure with a maximum credit of 2,000 dollars. Another credit was available for qualified fuel cell power plants at thirty percent of costs up to 500 dollars per .5 kilowatt of capacity. While the credit's dollar amounts may differ from the years stated the government wants to influence how we use our limited resources and provide rewards for alternative energy means.
As 2008 comes to a conclusion the residential energy credit has not been renewed. Our economy is in a recession, they price of fuel skyrocketed during the year, and the value of homes are rapidly declining. The residential energy credit could have enticed taxpayers to acquire other means of energy while increasing the value of their residences and creating jobs. In 1979 when America was hardly in a crisis as we are today there were over 4.8 million returns that contained residential energy credits totaling an amount over 480,000 dollars before any limitation. The residential energy credit should be available in every taxable year to influence what kind of energy Americans consume. Our future generations need a planet that is not completely depleted and guidance on which energy consumption will save our planet.
The residential energy credit will appear again in 2009. In 2009 a five hundred dollar maximum credit is placed on insulations, exterior windows and doors, non-solar water heaters, and certain heating and cooling equipment. The credit for tax years 2006, 2007, 2009 has a combined maximum of 500 dollars; where as the credit beginning in 1978 had a maximum credit of 300 dollars per year and a carryforward approach. There will be credits for solar water heating and photovoltaic systems. The tax credit for solar water heating systems will be thirty percent of expenditure costs with a maximum credit of 2,000 where as the credit for photovoltaic systems will not have a maximum credit. Thirty percent of cost of wind systems will apply for a credit up to 500 dollars for each .5 kilowatts capacity with a maximum credit of 4,000 dollars. Also fuel cells will receive thirty percent of costs for the system up to 1,500 for each .5 kilowatt capacity. It is clear that our environment is in need of preserving natural resources and our government must continue to influence taxpayers to invest in alternative energy resources.
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