Simulus Package
The stimulus package that Congress recently passed constants several funding streams for energy efficiency. Some of the highlights are tax credits up to $1500 for weatherization and high efficiency heating and cooling equipment. It is important to know that to receive the credit, the heating and cooling appliances must meet the new 2009 building code standards. Be sure and discuss this with your contractor to make sure whether or not equipment will quality for the tax credit.
The stimulus bill is sending $300 million dollars to the states for ENERGY STAR® appliance rebates. This program will be developed and administered by the Iowa Office of Energy Independence. Iowa’s share of these dollars has not been announced. Once we know how the program will work we will let you know. My hope is we can use these in addition to the rebate the cooperative provides for ENERGY STAR® rated dishwashers and clothes washers.
The Community Action Agencies will receive 40 million dollars for the Low-Income Home Energy Assistance Program (LIHEAP) Weatherization Assistance Program. The weatherization funding will improve the energy efficiency of the homes of low-income families encouraging the addition of insulation, sealing of air leaks, and/or modernization of heating and air conditioning equipment, at a total cost of up to $6,500 per home. The energy efficiency upgrades will be available for
families making up to 200% of the federal poverty level. For a family of four, this translates to about $44,000 per year. If you think you qualify, I want to encourage you to contact your local community action agency to sign up for this program. As we learn more about this program we will be providing you more information.
TAX CREDIT FOR ALTNERNATIVE ENERGY
There is also a tax credit for residential alternate energy production. Under this program, individuals are entitled to a nonrefundable personal tax credit equal to 30% of the cost of eligible solar water heaters, solar electricity equipment, fuel cell plants, and wind energy property. To qualify for the credit, the equipment must be installed on or in connection with a dwelling located in the United States that is used as a principal residence by the taxpayer.
The maximum annual credits are: $2,000 for solar hot water heaters, $500 for each half kilowatt of electric capacity generated by a wind turbine (not to exceed $4,000 annually). The maximum annual credit for each half kilowatt of electric capacity from fuel cell plants remains at $500.
In closing this month I have a couple of reminders. First, our rate increase began effect on May 1. You will start seeing the increase on your bills you receive in June. Secondly: all new electric installations require a permit from the Iowa Electrical Examining Board. We cannot energize a new service unless it has been inspected by
the State. For more information of the new State inspection program please visit their web site at
www.iowaelectrical.gov.