Alabamians may be eligible for federal tax incentives if they buy energy-saving products and put them into use between January 2006 and December 2007. The incentives are included in the new federal Energy Policy Act of 2005.
By making energy improvements to your existing home, you can earn up to $500 in tax credits. You can claim the credit for installing energy-efficient windows, doors, roofs, heating and cooling systems or insulation. The Act also provides tax credits of up to 30 percent of the cost of purchasing and installing solar-powered hot water systems and solar photovoltaic panels in your home for a maximum of $2,000 each. The two credits can be combined for a maximum of $4,000.
Federal tax incentives are also available for purchasing an electric or hybrid vehicle. Buyers of hybrid vehicles, which run on a combination of gas and electric power, can get a tax credit between $250 and $3,400. A tax credit of up to $4,000 is available to those who buy a car powered by rechargeable electric batteries.
There is also a $2,000 tax credit for home builders who build homes that are at least 50% more energy-efficient for heating and cooling.
For more information on these and other tax incentives, select a link below.
Tax Credit Fact Sheets.pdf
IRS Notice 06-09 - Alternative Fuel Vehicles.pdf
IRS Notice-06-26 - Nonbusiness Energy Property.pdf
IRS Notice 06-27 - Energy Efficient Home Credit.pdf
IRS Notice 06-28 - Energy Efficient Credit - Manufactured Homes.pdf
IRS Notice 06-52 – Energy Efficient Commercial Buildings.pdf
Tax Credit – Windows, Doors & Skylights.pdf
Federal Tax Credits for Energy Efficiency - ENERGY STAR
Buildings Energy Tax Incentives - DOE Buildings Program
Tax Incentives Assistance Project
Contact:
Karen Clifton
Energy Division
Alabama Department of Economic and Community Affairs
P.O. Box 5690
Montgomery, AL 36103-5690
334-242-5321 voice 334-242-0552 fax
karen.clifton@adeca.alabama.gov