Being unemployed for the past 6 months I’ve tried to spend my “spare” time productively. Having degrees in political science and professional experience in environmental policy you would be right to assume I’ve been following political (lack of) action on such issues as climate change. Especially what changes we may see with a GOP House and many states going GOP in the mid-term elections.
Recently, I’ve been curious about whether or not the controversial “Bush Tax Cuts” package, which was extended by President Obama and the Democratic Congress, kept in the Energy Star Tax Rebates. These Rebates were established to provide economic stimulus and decrease energy consumption, as well as giving indirect benefits to public health and welfare along with environmental stewardship. Short answer yes they were included. However, to my surprise the amounts homeowners are eligible for have decreased drastically! I thought the tax package “was passed without changes?”
A listing of the 2009 – 2010 tax credits and maximum dollars amounts can be found at the following website. Each tax credit was set at 30% of the overall cost. A dollar amount cap was also put in place.
http://www.energysavers.gov/financial/70015.htmlI personally am most familiar with the Woodstove (biomass) tax credit. For 7 years I worked with the trade association (HPBA), EPA, and federally recognized Indian Tribes in changing out old inefficient woodstoves for new EPA certified (zero emission) woodstoves. I’ve also worked on similar projects for all the listed tax credits with tribal communities. Under the 2009 – 2010 tax system, a homeowner could get 30% back on the cost of a woodstove with a maximum amount of $1,500 per year and a total of $3,000 over the two year two break cycle.
Under the recently passed tax package passed by Congress and signed by President Obama the amounts have been decreased by Congress. The new tax credit as outlined provides:
• 10% credit for the purchase of biomass heating appliance in 2011, capped at $300
• Removal of the lower heating value level (LHV) efficiency measurement
• Credit applies to purchase price only and is not extended to installation
Thus while the President and Congress declared there would no changes to the tax package in December they clearly have changed the system to negatively impact homeowners as well as strike a negative blow to energy efficiency, public health and welfare, as well as environmental stewardship.
Information on the changes to the Woodstove/Biomass heater tax credit can be found at the Hearth Patio and Barbecue Association’s website (HPBA):
http://www.hpba.org/members/news-updates/obama-signs-tax-package-extends-tax-credit-for-biomass-heating-appliancesUpon making phone calls to various organizations who work on energy star tax credit programs along with the Department of Energy I have discovered that ALL energy star tax credit have seen a 20% reduction on the benefit per household. As of now, the U.S. Department of Energy website pertaining to this issue only states “to check back later for more information on the 2011 tax benefits.”
http://www.energysavers.gov/financial/70010.htmlIn summary I am sad to say, but President Bush’s tax package was actually better than President Obama’s and the Democratic Congress’ with respect to energy efficiency, public health and welfare, and upholding the Clean Air Act, Clean Water Act, and other federal statutes.
Thanks for listening to my rant of day.
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