The United States Department of Energy has a lot in the works these days, fueled by the priorities of President Barack Obama. If the President has his way, the United States will make history by going from being one of the largest importers of foreign oil to being one of the largest exporters of renewable energy. In addition to reducing or eliminating America’s economic reliance on foreign fuel sources and fostering an export opportunity that would boost the overall American economy and stock market, the shift to renewable energy would have a positive environmental impact, reducing oil and coal energy air emissions. And finally, the shift will support the domestic energy industry specifically, by investing in American technology and creating jobs in the energy field, ultimately strengthening the United States energy market. The government, and in particular, the Department of Energy, is poised to facilitate this shift in our primary energy sources. The shift starts with the regulations rolled out on February 17Th, 2009 in the form of the American Recovery and Reinvestment Act of 2009.
Here are the facts. According to a statement from the White House (http://www.whitehouse.gov/issues/energy_and_environment/), more than $60 billion has been allocated to clean energy investments, $6.3 billion of which is going to the state and local governments to be used for renewable energy projects. On the national level, renewable energy projects in the pipeline plan to use ocean currents, waves, and wind to generate clean electricity. The Act also improves the grid, allowing the transfer of renewable energy generated in the more rural areas of the map to the cities where sales volume will be realized. It provides energy-efficiency upgrades to low-income housing, green workforce training, and research into better battery and energy storage technology. It increases fuel economy standards in the automobile industry and efficiency standards in household appliances.
The Act also provides consumer energy tax incentives that encourage the purchase of fuel-efficient vehicles, energy-efficient appliances, roofs, walls, heating and cooling systems, and windows, and the installation of renewable energy systems in residential homes. These incentives come in the form of tax credits, which are more lucrative than tax deductions because they are paid directly, rather than deducted from the homeowner’s taxable income. For fuel-efficient automobiles, such as hybrid vehicles, plug-in electric vehicles, and vehicles powered by alternative fuels, the tax credit varies based on a variety of factors. Plug-in hybrid conversion kits are also eligible, with a tax credit incentive of 10% of the purchase price, with a maximum of $4,000. For energy-efficient appliances and other energy efficiency improvements, homeowners can receive a a tax credit for 30% of the cost of the products, up to $1,500. For renewable energy systems such as solar electricity systems or wind turbine and generator systems, a 30% tax credit is available with no cap.
For more information about the American Recovery and Reinvestment Act of 2009 and how it supports energy efficiency and renewable energy sources, refer to the Department of Energy’s Recovery website at http://www.energy.gov/recovery/index.htm.