Credits and Rebates Galore Coming for Clean Energy Projects:
Time to Get Ready!
With tax season upon us, tax credits under the Inflation Reduction Act have drawn attention- and much more help is on the way for clean energy improvements!
Some generous credits are available for the 2022 tax year – most notably a 30% credit on the cost of home solar systems, fuel cells and wind turbines. There are more modest tax credits for the 2022 tax year for efficient heating and cooling systems and other energy efficiency projects.
But in the 2023 tax year, and beyond, these credits really ramp up. For example, a $300 credit on a heat pump for the 2022 tax year will jump to 30% of the cost. Numerous other improvements will also be eligible for 30% tax credits. See the complete list here.
New guidance issued by the federal government on electric-vehicle tax credits takes effect April 18. To qualify for $3,750 of the tax credit, 50% of a vehicle’s battery must be assembled or manufactured in the US. To qualify for the other half of the potential credit, 40% of critical minerals in its battery must come from the US or one of 20 countries with a free trade agreement. A full list of EVs sold in the US that are eligible for the tax credit will be available at the government’s official site, fueleconomy.gov.
The federal tax credits are only one part of the help coming to pay for consumers to move toward technology that emits less carbon. The Inflation Reduction Act makes billions available for rebates, but those programs are months away. The federal government is finishing reviewing comments before making funds available for states to apply. Once states are allocated funds, they will design and implement their own programs.
Additionally, many utilities are making rebates available for energy efficiency and electrification equipment. Xcel Energy has rebates now and will have more once the Demand Side Management and Strategic Issues proceedings are complete soon. Other utilities are offering rebates now.
Additionally, Denver and some other local governments have rebates, and some bills moving through the Colorado legislature may make more funds available.
So the bottom line is: it’s a good time to plan your home improvements!
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Spring Cleaning: A Good Time to Waste Less
During a massive clean out of my garage this spring, I kept wishing there were more and better options for recycling and reusing - and moving toward a zero-waste society.
In addition to taking books to local libraries and clothes to the Goodwill or ARC, along with basic recycling through your trash service, a variety of specialty recycling services can handle nearly anything. Here are some to get you started:
Learn more at ``Zero Waste is a Climate Solution,’’ a Jeffco CRES event featuring Ryan Call of Eco-Cycle April 27 at 7 p.m. Information here.
SustainAbility Recycling just moved to a new and larger site in Arvada where its Hard-to- Recycle Center can accept more kinds of items.
Ridwell picks up every two weeks from your home, and always collects certain categories such as clothing, plastic film. batteries and light bulbs. Every pickup also features a different special category. https://www.ridwell.com/
ShareWaste connects those who wish to recycle food and other organic waste with neighbors who are already composting or keep farm animals.
And if you are composting, new guidelines call for including only food scraps and plant trimmings. See new guidelines here.
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