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ENERGY CONSERVATION INCENTIVES
With the prospect of continuing increases in energy prices, both the Connecticut state government and the federal government have created incentives to encourage energy conservation.
CONNECTICUT INCENTIVES
- FURNACE REPLACEMENT REBATE is an incentive program for Connecticut households to replace their existing residential furnaces or boilers with more energy efficient models. The program is designed to provide rebates of up to $500 to households that purchase and install replacement natural gas, propane or oil furnaces and boilers between July 1, 2007 and July 1, 2017. Rebates will be available for replacement natural gas furnaces or boilers that meet or exceed Federal Energy Star standards and propane and oil furnaces and boilers that are at least 84% efficient. The amount of the rebate will decrease as income rises above a certain level.
The Furnace Replacement Rebate Program has a retroactive start date of July 1, 2007. Furnaces or boilers purchased and installed prior to that date will not qualify for a rebate.
Eligibility for the rebate for furnaces/boilers installed between July 1, 2007 and April 15, 2009 will be based on 2007 Federal and State Income Tax Filing Information. The Rebate Applicant must have filed a 2007 Federal Income Tax Return and meet Connecticut Adjusted Gross Income (CT AGI) levels. If you did not file a 2007 Federal Income Tax Return, you are not eligible for a Furnace Replacement Rebate. More info...
- SALES TAX EXEMPTION: HOME WEATHERIZATION PRODUCTS
Connecticut offers an exemption from the state sales tax (a.k.a. use tax) on the sale of home weatherization products. In order to qualify as a residential weatherization product, the item must be designed and marketed for residential use and not for commercial use. Items exempt from sales and use tax during the period include:
•Programmable thermostats
•Window film
•Caulking
•Window and door weather strips
•Insulation
•Water heater blankets
•Water heaters
•Boilers that meet the federal Energy Star standard. (Energy Star qualified boilers have an annual fuel utilization efficiency (AFUE) rating of 85% or greater.)
•Natural gas furnaces that meet the federal Energy Star standard
•Propane furnaces that meet the federal Energy Star standard
•Windows that meet the federal Energy Star standard
•Doors that meet the federal Energy Star standard
•Oil furnaces that are not less than 85% efficient based on the AFUE rating
•Ground-based heat pumps that meet the minimum federal energy efficiency rating.
For details on the exemption, including a list of all items covered by the exemption, see 2007 Legislation Affecting the Sales Tax on Home Weatherization Products on the Department of Revenue Services (DRS) website.
- SALES TAX EXEMPTION: HIGH MILEAGE CARS
The exemption under Conn. Gen. Stat. §12-412(110) for purchases or leases of high mpg passenger motor vehicles is effective for purchases or leases occurring on or after January 1, 2008, and on or before June 30, 2010. More info...
- ENERGY CONSERVATION LOANS
Connecticut offers the Energy Conservation Loan Program (ECL) and the Multifamily Energy Conservation Loan Program (MEL), which provide financing at below market rates to single family and multi-family residential property owners for the purchase and installation of cost-saving energy conservation improvements. The ECL program is for homeowners with gross annual income at or below 150% of the State Median Income, and the MEL program is open to owners of residential properties with at least five dwelling units in the building. The loan programs are administered by the Connecticut Housing Investment Fund (CHIF) with funding from the Connecticut Department of Economic and Community Development (DECD). More info...
- SOLAR POWER SYSTEM REBATES
The Connecticut Clean Energy Fund (CCEF) Residential Solar Photovoltaic (PV) Incentive Program offers system installation cost rebates for Connecticut residents who install PV systems on their homes. This incentive is available only through participating installers designated by CCEF. PV systems may be of any size but must be connected to the electric grid. Rebate amounts are calculated based on the Watts produced by the new PV system, up to a maximum of $25,000 per household. Homes can be one to four family residences. More info...
FEDERAL INCENTIVES
- TAX CREDIT: HYBRID CARS
Also in the Energy Policy Act of 2005 is a provision for a tax credit for people who purchase a new hybrid technology vehicle. This tax credit goes into effect in January 2006. The credit will vary according to the vehicle’s overall fuel efficiency, but the maximum amount of the potential credit is $3400. However, once a manufacturer sells 60,000 qualifying vehicles, the tax credit is phased out over a period of fifteen months for vehicles that manufacturer produces. More info..
- U.S. ENERGY TAX CREDITS
The American Recovery and Reinvestment Act of 2009 provides up to $1500 tax credit for energy improvements made in 2009 and/or 2010. More info..
(Click on left hand side, "Energy tax credits")
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SOURCES: Conn. Department of Revenue Services (DRS), Conn. Housing Investment Fund (CHIF), Conn. Clean Energy Fund (CCEF), American Council for an Energy-Efficient Economy (ACEEE), Conn. Light and Power Company (CL&P), Conn. Office of Policy and Management (OPM), EnergyStar.gov; Conn. Office of Policy and Management (OPM)
PREPARED BY: 211/tb
CONTENT LAST REVIEWED:August2009
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