Obama Energy Plan
Obama Energy Plan
President Obama’s Energy Proposal Mirrors Provision in Expanding Building Efficiency Incentives Act
Can we, as individuals and as a nation, develop and deploy substantial renewable energy resourses without the government being right in the middle of it. Seems to me, if we wanted to get it right, we would turn the whole thing over to Walmart. Is the governments track record strong enough to trust them with the countries energy?
With the following tax credits, renewable energy and energy efficiency is rewarded. But, are the tax credits too much or not enough? I feel the tax credits are just enough to keep a few people interested, but not high enough to effectively move the game to the goal line. Is the tax credit little more than a tease?
comment by Don Ames
by Shana Fong, recurve.com
The Expanding Building Efficiency Incentives Act of 2009 includes the following provisions:
•Energy Efficient Homes (Section 45L Credit). Currently, energy efficient homes that are 50 percent better than code with respect to heating and cooling costs receive a $2,000 credit. The credit has been lauded as a major success by both homebuilders and energy efficiency groups with increasing market share and moving the industry to a point where in 2008, 4.6 percent of all homes sold in the U.S. qualified for the tax credit. Under the bill, this credit would be extended through 2012. In addition, the bill would create a higher standard for energy efficient new homes that are 50 percent better than code with respect to heating, cooling, water heating, lighting, and appliance energy use. These homes would receive a tax credit of $4,000 and the credit would be in place through 2013.
•Energy Efficient Manufactured Homes (45L Credit). Energy Star manufactured homes are also eligible for a $1,000 tax credit. Low-income families spend a disproportionate amount of household income on energy, and this credit will spur energy efficient manufactured housing for these families. Under the bill the existing tax credit would increase to $1,500, and a new tier would be created for $2,500 for the new Energy Star standard that will take effect in 2010 and be significantly more stringent.
•Energy Efficient Low Income Housing. The Low-Income Housing Tax Credit Program is an economic incentive to produce affordable housing, where federal housing tax credits are awarded to developers of qualified projects, who either use or sell the credits to investors to raise capital for housing development projects. Over 2 million units for low income families and seniors have been constructed and preserved since 1987. However, there currently is not an incentive to make these buildings energy efficient. This legislation would provide an additional 50 percent tax credit of the current new homes tax credit if the building qualifies for the Low-Income Housing Tax Credit.
•Energy Rating. The bill also includes a tax credit for an individual to undergo an energy rating, or energy audit, to determine what energy efficiency investments are necessary. This industry is developing in the State of Maine, and with a third of all Maine homes constructed prior to World War II, there is a substantial amount of savings that are possible with advanced energy ratings. The tax credit is equal to $200.
•Energy Rating Training. The bill includes a $500 tax credit for training expenses of an individual to become an energy rater. As mentioned above, it is critical that the individuals who perform these energy audits are well trained and provide recommendations that are cost-effective