federal government to taxpayers who tax advisor to verify eligibility for each
properly fill out the tax forms (Federal item.
Form 5695, Arizona Form 310) and
can prove that they installed specific
Alternative Energy
energy-saving or energy-producing
Measures
devices in their homes in 2009.
Through 2016, solar energy systems
There are three significant fea-
qualify for the highest incentives,
tures to these tax credits.
combining Federal Solar Tax Credits
First, this is a full-value, one-to-
(at 30% of the installed cost, with no
one tax credit, not a deduction. In
upper limit) plus significant APS and
other words, if your new solar water
SRP rebates.
heater garnered you a $2,000 federal
tax credit, it is as if you paid the IRS
• Solar Water Heaters – the net
$2,000 towards your 2009 Income
cost of a highly efficient, $7,000
Taxes. You realize the tax benefit when
system can be less than $2,000, and
you file your taxes in 2010.
usually includes a brand new, 80-gal-
Second, the applicant must have
lon traditional water heater. The return ©2009 American Standard
an income tax liability in the same tax
on investment (ROI) can be as short as
year. It’s a bit complicated, but if you
two years.
pay federal and state income tax, you
• Solar Electric Systems (PV) – al-
most likely qualify. Consult your tax
though the initial price looks stagger-
What do I do first?
advisor and check out these website
ing, the net cost of a 5 kW, $30,000
for more information:
system, which in some homes elimi-
A home energy roadmap is essential.
Federal: Dsireusa.org/incentives/in-
nates on-peak electricity expense,
Determine what energy steps are most
centive.cfm?Incentive_Code=US37F
could be less than $5,000. In an
important for your home, and priori-
Arizona: Dsireusa.org/incen-
optimum situation, your ROI can be
tize all the things you would like to
tives/incentive.cfm?Incentive_
as low as four-and-a-half years.
do. If any particular area – insulation,
ventilation, water heating – is insuf-
Code=AZ01F&re=1&ee=1
Third, Arizona’s small Solar Tax Energy Efficiency
ficient, start there.
Credit is a one-time-only benefit of up
Measures
Another option is to contact a
whole-home energy consultant, and
to $1,000. That’s once, as in once-
In 2009 and 2010, energy reduction
have them help develop a plan for
in-a-lifetime. The Federal Tax Credits,
measures qualify for a modest Federal
your houses with specific steps, as-
however, extend until 2016, so you
Energy Efficiency Tax Credit (topping
sociated costs, rebates and returns on
can install insulation in 2009, solar
out at $1,500), at 30% of the cost of
investment. For example, OneSolar.
daylighting tubes in 2010 and thermal
all improvements combined. Below is
org helps diagnose your energy con-
windows in 2011, collecting Energy
a sampling of some useful measures
sumption patterns, custom-builds a
Efficiency Tax Credits each year pro-
that might qualify, and many of which,
plan to meet your unique needs, then
portional to the investments you made
unlike solar projects, can be executed
links you with vendors who can do
that tax year. Again, check with your
by the homeowner (check with your
the required work professionally and
supplier to verify specific require-
economically.
©2009 American Standard
ments.)
» Attic and wall insulation
David Wells is a partner in OneSolar,
» Thermal windows and doors
a community-minded, Green Energy
» Energy star appliances
Systems consultancy, helping Phoenix-
» Solar daylighting tubes
area homeowners sensibly reduce
» Instant hot water systems
their energy needs and move towards
» High-efficiency AC systems (13
energy independence. OneSolar can
EER/16 SEER or better)
help you navigate the rebate maze,
» HVAC duct sealing – reduces
and assist with any other home
leakage from your HVAC duct-
energy-reduction projects. Go Green
work, available only to APS cus-
at OneSolar.org, or call 623-535-0744.
tomers (not a federal tax credit).
See ad on page 24.
Pr i n t e d o n re c y c l e d Pa P e r t o Pr o t e c t t h e en v i r o n m e n t
October 2009 23
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