The importance of energy conservation is becoming common knowledge. In fact, countless home and business owners are starting to take advantage of new technologies that reduce energy consumption and add welcome breathing room to budgets.
But did you know that a commitment to eco-friendly efficiency can save you even more money? The State of Alabama, as well as some Alabama utility companies and cooperatives are currently offering a wealth of financial incentives, including tax breaks and rebates. Larry Childers is the Director of Communications & Information for the Alabama Department of Economic and Community Affairs, the agency overseeing the state incentives. Childers explained why our federal and state governments are providing incentives to encourage us all to attain greater energy efficiency. “Cutting energy consumption not only saves Alabamians money,” he said, “it reduces our dependence on foreign oil, limits environmental pollution and makes our nation more competitive and secure.” All it takes to realize theses additional economic gains is a little research.
Make a Switch
Moving to the use of renewable energy sources makes good sense for many reasons. However, if you make the switch from power or gas to wood for your home’s heating needs, the State of Alabama will give you an income tax deduction for the purchase and installation of a wood-burning heating system. Wood must be the primary heating fuel for your entire home, and the deduction must be taken for the taxable year during which the conversion was completed. Also note that the deduction only applies to the conversion of an existing system from power or gas to wood; it is not for the first-time installation of a wood-burning system.
The State of Alabama is also offering businesses up to $75,000 in interest subsidy payments as part of its Biomass Energy Program in an effort to encourage the installation of biomass energy systems. This program was created with agricultural businesses in mind, and the subsidies defray the interest on loans taken out for the installation. The program also offers technical assistance. Find more details at www.adeca.alabama.gov.
Update & Upgrade
Alabama has received funds in excess of $4 million from the Federal Recovery Act for the implementation and support of the state’s Energy Efficient Rebate Program for ENERGY STAR appliances in homes. The program kicks off April 19, 2010, in conjunction with Earth Day and will run through May 9th. If you purchase an eligible ENERGY STAR appliance during this period, you can qualify for rebates ranging from $25 to $150. Find more details at www.adeca.alabama.gov. In addition, the federal government is offering tax credits for upgrades to certain ENERGY STAR appliances. Find more details at www.energystar.gov.
Buying a new heat pump can be expensive, even when you factor in the savings you’ll realize on your monthly bill, thanks to the new system’s better efficiency. Dixie Electric Cooperative is making upgrading a little easier with its Energy Resources Conservation loan. The program offers residential customers a loan (up to $5,000 maximum at a 5% interest rate) to buy a new heat pump or for gas to electric conversions. The payments for the loan are simply added to your monthly bill and can be spread over a 60-month period. Find more details at www.dixieec.com.
Alabama Gas Corporation offers a rebate designed to encourage upgrades as well, giving residential customers a $100 rebate when they replace an old furnace with a new, natural gas furnace. Rebates are available for replacement of cooktops, stoves, water heaters and washers and dryers. Find more details at www.alagasco.com.
Sources: www.adeca.alabama.gov, www.dsireusa.org/incentives/index.cfm
