Fiscal cliff deal protects home energy benefits
Aaayaaahhhhhhhh! That was the sound of the nation falling off the fiscal cliff for a few hours before a deal was reached just after the new year. Yayyyyyy! That was the sound of relieved homeowners who are planning energy-efficient home upgrades and new appliance purchases in 2013.
Congress passed the American Taxpayer Relief Act of 2012 in the wee hours of January 1, 2013 (the Act). President Obama signed the Act into law on January 2, 2013.
Highlights of the Act
Installation of solar energy systems
Happily remaining in the fiscal cliff deal was an extension of tax credits for energy-efficient improvements to existing homes. Tax credits for renewable energy sources, energy-efficient homes and appliances, alternative fuels, and even electric motorcycles were all extended after President Obama signed the deal after late night wrangling with Congressional Republicans.
- Tax credit for energy-efficient improvements to existing homes and for updates to eligible property reflecting improvements in energy efficiency
- Tax credit for the construction of energy-efficient new homes that achieve a 30 percent or 50 percent reduction in heating and cooling energy consumption relative to a comparable home constructed under standards in effect for 2003
- Tax credit for U.S.-based manufacturers of energy-efficient appliances
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