Energy-efficient home improvements can have long- and short-term cost effects for Marylanders.
There are federal, state and, in some cases, local tax credits available to people who pay for energy-saving home improvements, said Bob Cassel, director of tax services for Baltimore-Washington Financial Advisers.
“I?m not sure how many people are aware of these credits,” Cassel said. “They get to upgrade their home at a low cost and those changes are saving them money in the long run.”
Through the state?s Solar Energy Grant Program, which went into effect in January 2005, the Maryland Energy Administration issues grants to residents who choose solar water heating for their home. Homeowners may receive back 20 percent of a system?s cost or a maximum grant of $2,000.
The federal government?s Energy Policy Act of 2005 also promotes the use of solar water heating. Under the act, taxpayers may receive credits of 30 percent of the cost or up to $2,000.
Howard County residents can even recoup a larger piece of the cost for a solar water heating system, Cassel said. County tax code reports that residents may receive 50 percent of the cost or up to $5,000 for installing a solar water heating system.
With a combination of the tax credits, Cassel said a Howard County resident could virtually “wipe out” the cost of the system, while saving money on heating in the future. A solar water heating system costs about $4,000 to $6,000, Cassel said.
The Energy Policy Act also offers credits for insulation, sealing, window, door and roofing projects; natural gas, propane and oil furnaces; and other energy efficient improvements. The credits are available until Dec. 31.
With energy costs rising steadily, Gov. Martin O?Malley in July hosted a state energy summit and set a goal to reduce the amount of energy used per person during the next eight years by 15 percent. The reduction would save rate payers $1.8 billion during that period, according to state projections.
Click here for information about the U.S. Department of Energy program and Maryland’s Solar Energy Grant program.
