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February 24, 2006
JS-4069
Treasury Secretary Encourages Energy
Efficiency at Home
Richmond, Va – Treasury Secretary John W. Snow, accompanied by a weatherization expert from Dominion, visited the home of Charles and Martha Donato today to discuss energy efficiency in the home. Snow highlighted the availability of new tax credits for homeowners who take steps to improve the energy efficiency of their homes.
"Improving the energy-efficiency of our homes is a highly effective ways of reducing our national energy consumption, which is a priority that the President set forth in his State of the Union Address this year," Snow said. "Guidance for two new tax credits, issued this week by the IRS, will provide incentive and reward for energy-saving efforts."
The tax credits described by Snow are part of the Energy Policy Act signed by President Bush last summer. Snow pointed out that "There can be no question that energy savings should start at home – and that's what these tax credits are all about. Homeowners who qualify for these credits will showcase a win-win scenario where precious energy is conserved while families also save money on heating and cooling bills – both goals of the President's Energy Policy Act of 2005."
Homeowner Credit Guidance
- Timing: Credits can be claimed in 2006 or 2007.
- Who/What Qualifies & How Much:
- Homeowners may claim up to $500 in credits over the two-year period.
- Energy-efficient improvements to the building envelope qualify for a 10 percent credit, e.g. insulation, exterior windows and doors (including storm windows and doors), and metal roofs (International Energy Conservation Code or the Environmental Protection Agency's Energy Star program standards may apply).
- Certain heating and cooling equipment that meets the energy-efficiency standards specified in the Internal Revenue Code.
- IRS Guidance:
- Establishes a process that manufacturers can use to certify their product(s) qualifies for the credit.
- Affords certainty to homeowners, who will be permitted to rely on the manufacturer's certification when claiming the credit on their returns.
For more information on the President's Advanced Energy Initiative go to: www.whitehouse.gov/stateoftheunion/2006/energy/index.html
REPORTS