Federal Stimulus Bill

The passage of the federal stimulus bill in February has made money available to Americans to help weatherize homes and make energy efficiency improvements.  The bill is called the “American Recovery and Reinvestment Act of 2009”.   Under the American Recovery and Reinvestment Act (ARRA) – almost $50 billion dollars will fund renewable energy development and energy efficiency measures.  The following information provides a general description of the programs available to the public.

·           Weatherization –

1.      Weatherization is the process of sealing air leaks and properly insulating a home.  According to the U.S. Department of Energy (DOE), weatherization can reduce heating bills by up to 32%, resulting in an average energy savings of $358 per year.

2.      The DOE has created the Weatherization Assistance Program (WAP) under the ARRA with a goal of weatherizing one million homes per year.  The WAP financially assists only those falling within a certain income range with weatherization expenses.

 3.     Eligible program participants receive a professional (government contracted) energy consultation reviewing insulation, energy bills, air leaks and heating/cooling systems.  Workers then arrive to make recommended energy upgrades.  The process generally takes 2 days and an average of $2,500 in improvements.  Since some homes have different needs, the stimulus bill allows up to $6,500 to be spent on a home.

 4.     More information can be found at the following website for the Texas Dept. of Housing and Community Affairs:  http://www.tdhca.state.tx.us/

               A)  Click the “Quick Assistance” tab to the right
               B)  Click “Weatherization Assistance”
               C)  Type in the city/county you live in
               D)  Agencies administering the program in the area will be listed.

   Governmental Tax Credits –

1.      For those not eligible for federally funded programs, there is a homeowner efficiency tax credit of up to $1,500, or 30%, of the cost for new energy upgrades, including weatherization activities as well as installation of efficient heating, ventilation, and air conditioning systems. 

Efficiency tax credits were already available for 2009, but carried a $500 limit and only covered up to 10% of a member’s investment.

2.      Tax credits directly lower federal income taxes, and are generally more valuable than tax deductions because they reduce taxes owed dollar-for-dollar.  This essentially triples the financial investment Americans get credit for and makes efficiency measures much more affordable.

3.      More information can be found at the following website for Federal Government Tax Breaks and Incentives:  http://www.dsireusa.org

               A) Click on “Federal Incentives”.
               B)  Then choose from the many incentive programs listed.

These programs are administered by the government.  GVEC is passing along this information as a courtesy to our members, but has no direct affiliation with these programs. 

Aside from government sponsored programs, GVEC offers energy efficiency incentives and money saving information such as:

· Energy Efficiency Rebates -  for Energy Star New Home Construction, Home Improvements and Renewables
· Conservation Plan 7 – A financing plan through GVEC to help finance energy efficient home improvements
· Free Energy Insights Home Audits
· Interactive Online Efficiency Tools: (Click on the icons below)

       

Call 1-800-223-4832 to find out more information or if we can assist you in any way.