New Tax Energy Credits for Electric Vehicles
The amount will vary based on the capacity of the battery used to power the vehicle. Get all information from
fueleconomy.gov
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Requirements
Phase Out & Termination
Claiming the Credit |
The Tax Incentives Assistance Project (TIAP), sponsored by a coalition of public interest nonprofit groups, government agencies, and other organizations in the energy efficiency field, is designed to give consumers and businesses information they need to make use of the federal income tax incentives for energy efficient products and technologies.
Consumer Incentives
Home Shell: Insulation, Windows, Sealing
Homeowners can get credits for energy improvements to their homes, such as windows, insulation, and envelope and duct sealing.
Home Heating & Cooling Equipment
Homeowners can get credits for installing efficient air conditioners and heat pumps; gas or oil furnaces and furnace fans; and gas, oil, or electric heat pump water heaters in new or existing homes.
Passenger Vehicles
Credits are available to buyers of hybrid gasoline-electric, diesel, battery-electric, alternative fuel, and fuel cell vehicles.
On-Site Renewables
Credits are available for qualified solar water heating and photovoltaic systems, small wind and geothermal heat pump systems.
Fuel Cells and Microturbines
Credits are available to homeowners and businesses who install qualifying systems. Fuel cells are an advanced technology to generate electricity at the site of use, but they are expensive for commercial buildings and are not widely available for homes.
TIAP Flyers for Residential and Commercial Incentives - Add your organization's logo and distribute at your next event to spread the word about energy efficiency incentives. |
$5,000 tax credit to over a million small businesses for every net new employee they hire, with other tax incentives for increasing wages. There are plans to eliminate capital gains taxes on small business investments, to provide tax incentives for small businesses that invest in new plants and equipment, and to use $30 billion of the money Wall Street banks repaid to help community banks offer small business loans.
More information from White House blog
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The Work Opportunity Tax Credit (WOTC) is a Federal tax credit incentive that the Congress provides to private-sector businesses for hiring individuals from twelve target groups who have consistently faced significant barriers to employment.
On February 17, 2009, the President signed into law the American Recovery and Reinvestment Act of 2009 (Recovery Act). The Recovery Act amends Section 51 of the Internal Revenue Code by adding two new WOTC target groups:
1) Unemployed Veterans -- A veteran hired after 2008 and before 2011 who has been discharged or released from active duty in the U.S. Armed Forces at any time during the 5-year period ending on the hiring date; and who received unemployment compensation under state or federal law for a period or periods totaling at least 4 weeks during the one year period ending on the hiring date. To be considered a Veteran, the applicant must have served on active duty (other than active duty for training) in the Armed Forces of the United States for a period of more than 180 days, or have been discharged or released from active duty in the Armed Forces for a service-connected disability, and
2) Disconnected Youth --an individual who is certified as having attained age 16 but not age 25 on the hiring date;not regularly attending any secondary, technical, or post-secondary school during the 6-month period preceding the hiring date; not regularly employed during such 6-month period; and not readily employable by reason of lacking a sufficient number of basic skills.
Individuals in these two new target groups must begin work for an employer during 2009 or 2010.
Work Opportunity Tax Credit
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Going Green: Safe and Healthy Jobs
Related NIOSH Safety and Health Topics
Agriculture
Agriculture ranks among the most hazardous industries. Farmers are at high risk for fatal and nonfatal injuries, work-related lung diseases, noise-induced hearing loss, skin diseases, and certain cancers associated with chemical use and prolonged sun exposure. Farming is one of the few industries in which the families (who often share the work and live on the premises) are also at risk for injuries, illness, and death.
Chemicals
Chemicals and chemical exposures have been studied in many workplaces and job activities. Hazard assessments and recommendations to minimize exposures can be found in NIOSH resources for many workplace chemicals, from acrylamide to xylene.
Construction
Over 11 million construction workers build and maintain roads, houses, workplaces and physical infrastructure. This work includes many inherently hazardous tasks and conditions such as work at height, excavations, noise, dust, power tools and equipment, confined spaces, and electricity. Construction has about 8% of U.S. workers, but 22% of the fatalities - the largest number of fatalities reported for any of the industry sectors.
Electrical Safety
Electrical current exposes workers to a serious, widespread occupational hazard; practically all members of the workforce are exposed to electrical energy during the performance of their daily duties, and electrocutions occur to workers in various job categories. Many workers are unaware of the potential electrical hazards present in their work environment, which makes them more vulnerable to the danger of electrocution. Electrical injuries consist of four main types: electrocution (fatal), electric shock, burns, and falls caused as a result of contact with electrical energy.
Falls from Elevation
Falls from elevation hazards are present at most every jobsite, and many workers are exposed to these hazards daily. Any walking/working surface could be a potential fall hazard. An unprotected side or edge which is 6 feet or more above a lower level should be protected from falling by the use of a guardrail system, safety net system, or personal fall arrest system. These hazardous exposures exist in many forms, and can be as seemingly innocuous as changing a light bulb from a step ladder to something as high-risk as connecting bolts on high steel at 200 feet in the air.
Hazards and Exposures
From abrasive blasting to West Nile Virus, a broad spectrum of occupational hazards and exposures has been studied in many workplaces and job activities. Hazard assessments and recommendations to minimize exposures and address hazards can be found in this collection of NIOSH resources.
Hazards to Outdoor Workers
Outdoor workers are exposed to many types of hazards that depend on their type of work, geographic region, season, and duration of time they are outside. Industry sectors with outdoor workers include the agriculture, forestry, fishing, construction, mining, transportation, warehousing, utilities, and service sectors. Outdoor workers include farmers, foresters, landscapers, groundskeepers, gardeners, painters, roofers, pavers, construction workers, laborers, mechanics, and any other worker who spends time outside. Employers should train outdoor workers about their workplace hazards, including hazard identification and recommendations for preventing and controlling their exposures.
Highway Work Zone Safety
Fatal highway incidents remained the most frequent type of fatal workplace event, accounting for one in every four fatalities nationally in 2007. Fatal highway incidents fell by 3 percent in 2007, accounting for 1,311 worker deaths, the lowest since 1993. Nonhighway incidents (such as those that might occur on a farm or industrial premises) stayed about the same. The number of workers who were killed after being struck by vehicles or mobile equipment fell from 379 in 2006 to 342 in 2007.
Machine Safety
Workers are killed or injured as result of hazardous contact with machinery and equipment. Some of the leading causes of injuries (especially in Agriculture, Mining, Manufacturing and Construction) include being struck by or against an object, caught in or compressed by equipment, and caught in or crushed in collapsing materials.
Manufacturing
Activities within the Manufacturing sector range from food and textile processing and production, to metals processing and heavy equipment production, to oil refining and chemical production. Processes can range from production of bulk materials like minerals, metals, and chemicals, to the production of small or intricate items such as electronics, specialty chemicals, or nanoparticles.
Nanotechnology
NIOSH is at the forefront of U.S. research to understand the occupational health implications of nanomaterials, offering interim guidelines for working safely with nanomaterials, consistent with the best scientific knowledge.
Noise and Hearing Loss Prevention
Noise is not a new hazard. It has been a constant threat since the industrial revolution. Too much noise exposure may cause a temporary change in hearing (your ears may feel stuffed up) or a temporary ringing in your ears (tinnitus). These short-term problems usually go away within a few minutes or hours after leaving the noise. However, repeated exposures to loud noise can lead to permanent, incurable hearing loss or tinnitus. NIOSH recommends removing hazardous noise from the workplace whenever possible and using hearing protectors in those situations where dangerous noise exposures have not yet been controlled or eliminated.
Protective Clothing
NIOSH’s Protective Clothing and Ensembles Program is aimed at protecting the skin from various health hazards that may be encountered in the workplace or during a terrorist attack. The program has evolved over the years to incorporate a broad range of studies of how chemicals seep through barrier materials, leak through small holes, or change the barrier material to reduce its protection.
Respirators
While respirators should only be used as a "last line of defense" in an exposure control hierarchy, NIOSH issues recommendations for respirator use when engineering control systems and other precautions are not feasible. These recommendations and other research to evaluate respiratory effectiveness are described in many NIOSH resources developed in accordance with the NIOSH federal respiratory regulations 42 CFR Part 84 and in concert with various partners from government and industry.
Services
More than 65 million workers were employed in the 11 NAICS service industries. Occupations within these industries account for 50.5% of U.S. workers, 29% of workplace fatalities and 23% of nonfatal injuries, according to 2004 BLS data. The two leading causes of fatal injuries in most service industries are transportation incidents and violence. Otherwise, the types of hazards across industries in the NIOSH Services sector vary substantially.
Transportation, Warehousing, and Utilities
More than 7 million workers in transportation, warehousing, and utilities industries are at risk for fatal and nonfatal injuries. Occupations within these industries account for 5% of U.S. workers and 15% of workplace fatalities. Workers employed in truck transportation account for 58% of the fatalities in transportation, warehousing, and utilities industries. In addition to being at risk of fatal injuries, workers in these industries are at risk of injury or illness from transportation incidents, overexertion, electrocution, vehicle emissions, and falls. |
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Incentives of up to $1000 per system are being offered by Hawaii's electric utilities to their customers who currently have electric water heaters; contact your local electric company for more information.
Federal tax credits are also available:
Hawaii Renewable Energy Solar Tax Credit
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Summary of the provisions of the Energy Improvement and Extension Act of 2008 that was part of the Emergency Economic Stabilization Act. These provisions pertain to alternative fuels and vehicles.
State and federal laws and incentives |
Some diesels purchased or placed into service after December 31, 2005 may be eligible for a federal income tax credit of up to $3,400. (No eligible vehicles were manufactured for sale until 2008.)
Credit amounts begin to phase out for a given manufacturer once it has sold over 60,000 eligible hybrid and diesel vehicles.
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The products in this section are eligible for tax credits at 30% of the cost, up to a total credit of $1,500; they must be "placed in service" from January 1, 2009 through December 31, 2010.
- Claim improvements made in 2009 on your 2009 taxes, filed by April 15, 2010.
- Use the 2009 version of IRS Tax Form 5695 (PDF 107 KB). Download Adobe Reader.
- Save your receipts and the Manufacturer Certification Statement for your records.
Tax Credits for Energy Efficiency
- Biomass Stoves
- HVAC
- Insulation
- Roofing
- Water Heaters (non-solar)
- Windows and Doors
- Geothermal Heat Pump
- Solar Energy Systems
- Wind Energy Systems
- Fuel Cells
- Vehicle Tax Credits
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In order to foster investment and job creation in clean energy manufacturing, the American Recovery and Reinvestment Act included a tax credit for investments in manufacturing facilities for clean energy technologies. The Section 48C program will provide a 30 percent tax credit for investments in 183 manufacturing facilities for clean energy products across 43 states.
Qualifying manufacturing facilities included the production of a wide range of clean energy products:
- Solar, wind, geothermal, or other renewable energy equipment
- Electric grids and storage for renewables
- Fuel cells and microturbines
- Energy storage systems for electric or hybrid vehicles
- Carbon dioxide capture and sequestration equipment
- Equipment for refining or blending renewable fuels
- Equipment for energy conservation, including lighting and smart grid technologies
- Plug-in electric vehicles or their components, such as electric motors, generators, and power control units
- Other advanced energy property designed to reduce greenhouse gas emissions may also be eligible as determined by the Secretary of the Treasury.
The statutorily specified review criteria included:
- Greatest domestic job creation (direct and indirect)
- Greatest net impact in avoiding or reducing air pollutants or emissions of greenhouse gases; lowest levelized cost of energy
- Greatest potential for technological innovation and commercial deployment
- Shortest project time from certification to completion
More information at Fact Sheet: $2.3 Billion in New Clean Energy Manufacturing Tax Credits |
If you purchase an energy-efficient product or renewable energy system for your home, you may be eligible for a federal tax credit.
What You Need to Know About Tax Credits for Consumer Energy Efficiency
- What is included in the Federal Tax Credit?
- How do I apply for my Federal Tax Credit?
- Top ten Frequently Asked Questions
Federal Tax Credits for Energy Efficiency |
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A. Clean Renewable Energy Bonds (“CREBs”)
CREBs may be used by primarily public sector entities to finance renewable energy projects. CREBs are issued, theoretically, with a 0% interest rate. The borrower only pays back the principal of the bond, and the bondholder receives federal tax credits in lieu of the traditional bond interest. CREBs differ from traditional tax-exempt bonds because CREB tax credits are treated as taxable income for the bondholder.
CREB tax credits may be taken each year the bondholder has a tax liability, as long as the credit amount does not exceed the limits established by the EPACT. The U.S. Department of the Treasury lists the treasury rates for prior CREB allocations, or "old" CREBs, as well as rates for new CREBs and other qualified tax credit bonds.
B. Qualified Energy Conservation Bonds (QECBs)
QECBs may be used by state, local, and tribal governments to finance certain types of energy projects. QECBs are qualified tax credit bonds, and in this respect are similar to new CREBs. The Recovery Act increases the amount of funds available to issue qualified energy conservation bonds from the one-time national limit of $800 million to $3.2 billion.
The definition of "qualified energy conservation projects" is fairly broad and contains elements relating to energy efficiency capital expenditures in public buildings; renewable energy production; various research and development applications; mass commuting facilities that reduce energy consumption; several types of energy related demonstration projects; and public energy efficiency education campaigns. Renewable energy facilities that are eligible for CREBs are also eligible for QECBs.
More Info
Tax Breaks for Businesses, Utilities, and Governments |
The following passenger vehicles and light trucks have been certified for the hybrid tax credit in the following amounts. For qualifying heavy hybrid vehicles see: Qualified Alternative Fuel Motor Vehicles and Heavy Hybrid Vehicles
2010 Model Year Hybrid Vehicles (as of 01-04-10)
Model Year 2009 |
Federal
Incentives/Policies for Renewables & Efficiency
Please note: The information on the DSIRE web site provides an overview of incentives and other policies, but it should not be used as the only source of information when making purchasing decisions, investment decisions, tax decisions or other binding agreements. |
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The CDFI Fund was created for the purpose of promoting economic revitalization and community development through investment in and assistance to community development financial institutions (CDFIs). The CDFI Fund was established by the Riegle Community Development and Regulatory Improvement Act of 1994, as a bipartisan initiative.
The CDFI Fund achieves its purpose by promoting access to capital and local economic growth in the following ways:
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through its CDFI Program by directly investing in, supporting and training
CDFIs that provide loans, investments, financial services and technical assistance
to underserved populations and communities;
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through its New Markets Tax Credit (NMTC) Program by providing an allocation
of tax credits to community development entities (CDEs) which enable them
to attract investment from the private-sector and reinvest these amounts
in low-income communities;
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through its Bank Enterprise Award (BEA) Program by providing an incentive
to banks to invest in their communities and in other CDFIs; and
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through its Native Initiatives, by taking action to provide financial
assistance, technical assistance, and training to Native CDFIs and other
Native entities proposing to become or create Native CDFIs.
Since its creation, the CDFI Fund has awarded $1.11 billion to community development organizations and financial institutions; it has awarded allocations of New Markets Tax Credits which will attract private-sector investments totaling $26 billion, including $1 billion of special allocation authority to be used for the recovery and redevelopment of the Gulf Opportunity Zone.
More Info about Community Development Financial Institutions Fund (the CDFI Fund)
» Search CDFI Fund Award Database |
Do you know that the new law increases the credit rate to 30 percent of the cost of all qualifying improvements and raises the maximum credit limit to $1,500 for improvements placed in service in 2009 and 2010? The credit applies to improvements such as adding insulation, energy efficient exterior windows and energy-efficient heating and air conditioning systems.
Audio File for Podcast: Energy Tax Credits
Residential Energy Efficient Property Credit (Section 1122): This nonrefundable energy tax credit will help individual taxpayers pay for qualified residential alternative energy equipment, such as solar hot water heaters, geothermal heat pumps and wind turbines. The new law removes some of the previously imposed maximum amounts and allows for a credit equal to 30 percent of the cost of qualified property. See Notice 2009-41.
Plug-in Electric Drive Vehicle Credit (Section 1141): The new law modifies the credit for qualified plug-in electric drive vehicles purchased after Dec. 31, 2009. To qualify, vehicles must be newly purchased, have four or more wheels, have a gross vehicle weight rating of less than 14,000 pounds, and draw propulsion using a battery with at least four kilowatt hours that can be recharged from an external source of electricity. The minimum amount of the credit for qualified plug-in electric drive vehicles is $2,500 and the credit tops out at $7,500, depending on the battery capacity. The full amount of the credit will be reduced with respect to a manufacturer's vehicles after the manufacturer has sold at least 200,000 vehicles. For more information see: Questions and Answers, Notice 2009-54 and Notice 2009-89.
Plug-In Electric Vehicle Credit (Section 1142): The new law also creates a special tax credit for two types of plug-in vehicles — certain low-speed electric vehicles and two- or three-wheeled vehicles. The amount of the credit is 10 percent of the cost of the vehicle, up to a maximum credit of $2,500 for purchases made after Feb. 17, 2009, and before Jan. 1, 2012. To qualify, a vehicle must be either a low speed vehicle propelled by an electric motor that draws electricity from a battery with a capacity of 4 kilowatt hours or more or be a two- or three-wheeled vehicle propelled by an electric motor that draws electricity from a battery with the capacity of 2.5 kilowatt hours. A taxpayer may not claim this credit if the plug-in electric drive vehicle credit is allowable. For more information see: IR-2009-44 and Notice 2009-58.
Conversion Kits (Section 1143): The new law also provided a tax credit for plug-in electric drive conversion kits. The credit is equal to 10 percent of the cost of converting a vehicle to a qualified plug-in electric drive motor vehicle and placed in service after Feb. 17, 2009. The maximum amount of the credit is $4,000. The credit does not apply to conversions made after Dec. 31, 2011. A taxpayer may claim this credit even if the taxpayer claimed a hybrid vehicle credit for the same vehicle in an earlier year.
Treatment of Alternative Motor Vehicle Credit as a Personal Credit Allowed Against AMT (Section 1144): Starting in 2009, the new law allows the Alternative Motor Vehicle Credit, including the tax credit for purchasing hybrid vehicles, to be applied against the Alternative Minimum Tax. Prior to the new law, the Alternative Motor Vehicle Credit could not be used to offset the AMT. This means the credit could not be taken if a taxpayer owed AMT or was reduced for some taxpayers who did not owe AMT.
Energy Incentives for Individuals in the American Recovery and Reinvestment Act |
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to get the tax credit. The IRS has provided the following guidance regarding the tax credits for constructing energy efficient new homes available under the Energy Policy Act of 2005:
