| Energy Policy Act of 2005 (H.R. 6) |
The Energy Policy Act of 2005 (EPAct 2005)was signed into law by President Bush on August 8, 2005. EPAct 2005 offers consumer and builder tax incentives for increasing the energy efficiency of new and existing homes through measures such as added insulation; energy-efficient windows, doors and roofs; and energy-efficient heating and cooling equipment. Incentives include the purchase and installation of energy-efficient appliances and products, renewable energy measures, construction of highly energy-efficient homes, and the purchase of certain fuel-efficient vehicles. Most of these policies remain in effect through 2007.
About Tax Credits
A tax credit is generally more valuable than an equivalent tax deduction because a tax credit reduces tax dollar-for-dollar, while a deduction only removes a percentage of the tax that is owed. Beginning in tax year 2006, consumers will be able to itemize purchases on their federal income tax form, which will lower the total amount of tax they owe the government.
Energy Policy Act of 2005 (H.R. 6)
This is the full text of H.R. 6.
Vehicles Tax Credits
- IRS List of Vehicles Certified for the Tax Credit
The tax credit for hybrid vehicles applies to vehicles purchased or placed in service on or after January 1, 2006. The tax credits are being phased out for Toyota hybrids, because the company has sold more than 60,000 hybrids since the tax credit took effect. Toyota hybrids are currently earning only one-quarter of their original tax credit, and the tax credit for those vehicles will no longer be available after October 1, 2007. Honda Motor Company has sold more than 60,000 hybrid vehicles that qualify for the federal tax credit, so the tax credits for the automaker's hybrid vehicles will be cut in half as of January 1, 2008. For the second half of 2008, the tax credits will be cut in half again, and they'll be eliminated in 2009 (See the IRS press release).
- IRS Guidance on Hybrid Vehicles
IRS/Treasury provide guidance to hybrid manufacturers.
- Tax Credits for Heavy-Duty Hybrids
An American Council for an Energy-Efficient Economy publication.
IRS Guidance
Solar Tax Credits
The Energy Policy Act of 2005 (EPAct) provides incentives for purchasing and using solar equipment. The tax credits are available for systems "placed in service" from January 1, 2006 through December 31, 2008.
SEIA Guide to Federal Tax Incentives
To help homeowners take advantage of the federal solar energy tax credits, the Solar Energy Industries Association (SEIA) has published The SEIA Guide to Federal Tax Credits for Solar Energy, a 40-page online manual. Also see this SEIA press release.
General
Tax Incentives Assistance Project (TIAP)
TIAP provides information to give consumers and businesses information they need to make use of the federal income tax incentives for energy efficient projects and technologies passed by Congress as part of the Energy Policy Act of 2005. TIAP is sponsored by a coalition of public interest nonprofit groups, government agencies, and other organizations in the energy efficiency field.
Energy Policy Act of 2005 Tax Credits
U. S. Department of Energy synopsis of the EPAct 2005 Tax Credits.
Renewable Electricity Production Tax Credits
A summary of the tax credits for renewable energy generation provided by Northeast Regional Biomass Program.
Federal Tax Credits for Energy Efficiency
ENERGY STAR tax credit summaries for consumers, homeowners, home builders, manufacturers, and commercial buildings.
Energy-Efficiency Home and Vehicle Tax Credits
This site is a partnership of the Alliance to Save Energy and the U.S. Department of Energy. It examines tax credits and vehicle, home improvement and solar credits available under the Energy Policy Act. For additional information, see Powerful Savings.
Commercial Building Tax Deduction Coalition
The Coalition is working to ensure the provisions of EPAct 2005 related to commercial buildings are implemented smoothly and to promote awareness and information about its benefits, and energy efficiency improvements in commercial buildings. See "About the Provisions" section for a commercial buildings FAQ and the "Related Rules and Links" for IRS/Treasury guidance.
Energy Policy Act of 2005 Links to News and Analysis
An extensive list of organizations offering guidance on the Energy Policy Act of 2005 published by Washington State University Extension Energy Library.
NEMA Assessment of the Energy Policy Act of 2005
A National Electrical Manufacturers Association document.
Schools and the Energy Policy Act of 2005
An Alliance to Save Energy article.
High-Efficiency Lighting Tax Benefits
This free National Lighting Bureau brochure explains the new tax benefits available For High-Efficiency Lighting as authorized by the Energy Policy Act of 2005 and offers sources of additional information.
Simply Insulate: Federal Tax Incentives for Adding Insulation
How would you like the federal government to pay you for adding insulation to your home? You save money and make your home more comfortable and the federal government pays you. With energy costs skyrocketing, the new tax incentives will help homeowners and builders make improvements to new and existing homes and buildings, which account for more than 40% of all energy used in the U.S. Get more information on how insulation can help you qualify for a tax incentive.
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