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Incentives to go green, save energy are greater than ever

April 08, 2009|By JAY HANCOCK , jay.hancock@baltsun.com

Two-thirds of Americans think the environment is getting worse, but most haven't made major changes to help the air, soil and water, according to recent Gallup polls.

If you're one of the procrastinators, your number of excuses just got smaller. Thanks to the recently passed federal stimulus bill, Maryland energy grants and a maturation of the alternative energy industry, the incentives to go green in big ways and small are higher than they've ever been.

Wind-generated electricity is the cheapest in history. Government and utilities will pay for huge portions of insulation upgrades, efficient appliances and solar installations. And anybody can shave $100 off his or her electric bill this summer by letting Baltimore Gas & Electric briefly shut off their air conditioning on the hottest days.

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The federal stimulus allows a one-time, $1,500 tax credit for 30 percent of the cost of qualified energy upgrades between now and the end of 2010.

Spend $1,000 on attic insulation? The feds will pay for $300 of it. It's a tax credit, not a deduction, which means the $300 comes straight off the U.S. taxes you would otherwise owe.

Next, say you buy an Energy Star-certified water heater for another $1,000. You get $300 more in a tax credit. You can keep this up until you hit the $1,500 cap.

The best federal deal of all, however, is for solar arrays and other hardware generating renewable energy. The credit is 30 percent, and there's no cap. Put a $30,000 solar setup on your roof - a typical cost - and the IRS will spot you $9,000, enough to wipe out a year's taxes for many families.

Maryland is handing out grants of up to $10,000 for household wind- and solar-energy installations and $3,000 for new geothermal heat pumps.

(The state might reduce this for the fiscal year beginning July 1. But substantial state incentives will remain, says Malcolm Woolf, director of the Maryland Energy Administration. Contact MEA at 410-260-7655.)

Maryland is also aiming federal stimulus money at upgrading insulation and appliances for low- and moderate-income households. (Contact the state Department of Housing and Community Development, 410-514-7000).

Harford, Howard, Montgomery and Prince George's counties also offer property tax credits for solar and geothermal units.

"Maryland is a bit on the cutting edge" of energy efficiency promotion, said Lane Burt, a policy analyst at the Natural Resources Defense Council.

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