Maryland Energy Tax Credits
In an effort to reduce our energy consumption and increase the amount of energy we receive from alternative, sustainable sources, all levels of government in the United States have launched a variety of energy tax credits. These energy tax credits and other programs make it more affordable and practical to renovate your home to be more energy efficient and self-reliant. The state of Maryland has created a significant number of incentives that many residents have used to invest in energy efficiency and renewable energy, and this post will examine a few of the most important programs that you can use when renovating your home.
To start with, there are federal energy tax credits and other programs that you can benefit from. So even if you aren’t a resident of Maryland, these programs and incentives can be put to use improving your residence’s energy efficiency. The largest of these energy tax credits is for 30% of your expenditures on alternative power systems, and includes labor and installation costs. The alternative energy systems covered under the program are solar-power systems, solar-powered water heaters, fuel cells, wind-energy systems, and geothermal heat pumps. If you plan on participating in this program, act quickly! This energy tax credit runs through the end of 2016, after which you will no longer receive the 30% tax credit for upgrading your home energy systems.
In order to promote the use of renewable energy among everyday homeowners, Maryland has tied a number of energy tax credits to the purchase and use of solar-power panels, solar-powered water heaters, and wind-energy systems. All of these systems are exempted from the 6% state sales tax. In addition, a later bill exempted solar-powered water heaters and wind-energy systems from being included in state property tax assessments. A number of other renewable energy systems, such as geothermal heating/cooling systems, are assessed at a value equivalent to regular heating systems, or at a lower price.
Beyond energy tax credits, Maryland has other financial incentives for homeowners who invest in renewable energy and energy efficiency. The state will pay a flat grant of $500 to those who install solar-powered water heaters, and $1000 for solar energy systems. Keep in mind that these grants are only applicable to primary residences, not secondary residences and vacation homes. Maryland also provides low-interest rate loans to homeowners seeking to improve their property’s energy efficiency. Loans of anywhere between $1,500 and $30,000 are available for renovations, at rates of either 6.99% or 9.99%. In order to qualify for the lower interest rate, a home energy audit must be completed in order to maximize the gains in energy efficiency.
Even low-income Maryland residents can potentially upgrade their home’s energy efficiency. With the EmPOWER Maryland program, households that make less than or equal to 200% of the federal poverty level ($47,100 for a family of 4 in 2013) can qualify for the program, which will provide a home energy audit and subsequent improvements at no charge to the resident. Renters can also participate with their landlord’s consent.
The energy tax credits and incentives listed here are just several of the programs provided for all Maryland residents, but many more programs are available based upon your local government or utilities provider. To get more details about financial incentives for energy efficiency and renewable energy upgrades that you can participate in, check out http://www.energysavvy.com/rebates/MD/
-Written by John Bramley