Howard County residents considering adding energy conservation devices to their houses could get a tax credit, but experts said prompting this investment will take more than the tax incentive.
“If you are inclined to make an investment to save on the cost of energy, it?s an inducement to save,” said Jeffrey Blum, a Pittsburgh-based tax attorney with Buchanan, Ingersoll and Rooney.
“It?s really the icing on the cake.”
A bill, introduced by Council Member Guy Guzzone, D-District 3, would give residents a credit of either half the cost of installing the device or $5,000. The cap for the annual amount of credits granted is $250,000.
The credit would cover solar energy and geothermal devices, both of which are used for heating, cooling or providing hot water.
Guzzone could not be reached for comment.
Retrofitting a home for solar energy can get expensive. For example, an average family invests about $8,500 for a solar hot-water device, said Tim Grahl, residential sales associate at Chesapeake Wind and Solar, which provides solar devices.
This decision is a tough sell for some families who don?t want to pay the one-time fee, Grahl said.
“This bill will lower that, and the payback will be shorter, and you will save money on energy,” he said.
The credit would give a boost to the energy conservation industry. More residents investing in such devices could lead to job growth for companies that provide solar and geothermal devices, Grahl said.
“The solar industry is proving itself now, and such a bill will give it attention and show it?s a viable solution,” he said.
People tend to invest in such devices out of a desire to save the environment, said Richard Goettle, a professor in finance and economics at Northeastern University in Boston.
“You invest a ton of money, and the energy savings take a long time to pay it off,” he said.
