Incentives

Incentives for Sustainable Building

There are many incentives for the builder and consumer. Below are a few of the federal, state and local incentives.

Federal Tax Credits

Existing Homes:

30% of cost up to $1500 for efficient windows, doors, roofs, insulation, heating, cooling, ventilation, water heaters and biomass stoves

30% of cost (no upper limit) for geothermal heat pumps, solar panels, solar water heaters, small wind systems and fuel cells.

New Homes:

30% of cost (no upper limit) for geothermal heat pumps, solar panels, solar water heaters, small wind systems and fuel cells.

(no credits for efficient windows, doors, roofs, insulation, heating, cooling, ventilation, water heaters and biomass stoves)

Hybrid Cars:

Tax credit for plug-in hybrid electric vehicles ranging from $2500-$7500. The first 250,000 vehicles sold will get the $7500 tax credit.

Builder Tax Credits:

$2000 /new energy efficient home that achieves 50% energy savings for heating and cooling over 2004 International Energy Conservation Code.

$1000/new manufactured home that achieves 30% energy savings for heating and cooling over 2004 International Energy Conservation Code.

Federal Tax Deduction for Commercial Buildings:

$1.80/sq ft for new/existing commercial buildings that save at least 50% of heating and cooling energy of a building. Partial deductions of $.60 per square foot can be taken for improvements to one of three building systems—the building envelope, lighting, or heating and cooling system—that reduces total heating, cooling, ventilation, water heating and interior lighting energy use by 16 2/3%.
See reference site for details: www.energystar.gov/taxcredits

FREE Platinum Certifications:

Beginning January 1, 2007, USGBC is challenging the building industry to put them out of business: USGBC will fully rebate the certification fees for any project that earns LEED Platinum certification. Platinum buildings are highly energy and resource efficient; provide superior indoor comfort for the building's occupants; and dramatically reduce CO2 emissions, a primary cause of global climate change.

See reference site for details: www.usgbc.org

Accelerated Depreciation:

Investments in renewable energy may also qualify for accelerated depreciation on Federal Tax returns. Under the Modified Accelerated Cost-Recovery System (MACRS), businesses can recover investments in certain property through depreciation deductions. Most solar, wind and geothermal fuel cells, micro-turbines, and solar hybrid lighting technologies are now classified as 5-year property as well.

See reference site for details: www.dsireusa.org

State Incentives

Reduced Business and Occupation (B&O) Tax Rate:

For Washington manufacturers and wholesale marketers of solar-electric (photovoltaic) modules or silicon components of those systems. The reduced B&O tax rate of 0.2904% is 40% lower than the standard manufacturing B&O tax rate of 0.484%.

Sales Tax Exemptions:

No sales tax on the sales of equipment used to generate electricity from wind, sun or landfill gas, solar water heating systems and fuel cells.