What the Fiscal Cliff Deal Means to Residential Energy Customers
The 2011 debt ceiling crisis and the 2012 fiscal cliff debates caused much of a stir in the renewable electricity and energy efficiency sectors. With the threat of losing Federal tax credits and other incentives, many companies and residents alike hesitated to invest in renewable energy and energy efficient improvements and technologies.
Leaving all politics aside, the deal brings good news for many residential energy users over the next year. Federal tax credits have been extended until at least the end of 2013 for residents for the following:
- Energy-efficient existing homes
- Energy-efficient new homes
- Energy-efficient appliances
- Plug-in electric vehicles (now including motorcycles)
Tax credits for businesses also benefit residents because they allow for more companies to put time and money into creating better, more affordable renewable energy products and services. The production tax credit (PTC) for renewables is one of the most relevant extensions. Companies that produce power from wind, geothermal, hydro biomass can continue to receive the PTC or receive an up-to-30% investment tax credit (similar to the tax credit in the solar industry).
About to file your taxes? Stay tuned for the next post. It will describe in more detail the residential energy efficient improvements that qualify for federal tax credits for 2012 and 2013.