Time is running out on tax credits for energy-saving improvements

By BILL HEWITT

Everyone knows about solar power and enhanced insulation for their homes. But there are other ways beyond those to enjoy the benefits of a healthier, more cost-effective home such as ground-source or air-source heat pumps, and even heat pump water heaters. You may use one or all of these, or you certainly may have been thinking about finding out about how you can take advantage of this tech. 

Here’s the thing: Federal tax credits are going away this year for a number of these approaches. We want to encourage you to start looking now at what can work for you before the benefits from the federal government end, most of which go away on Dec. 31.

The first tax credit to vanish will be for electric cars. Credits exist for both new and used EVs. There are huge advantages to having an EV, not the least of which is never having to gas up again. You can charge your car easily at home. EVs also have fewer maintenance needs than internal combustion vehicles — no oil, no filters, no muffler, for instance. There is a $7,500 federal tax credit available now for qualified new vehicles and some income restrictions, as well as a $4,000 credit for used EVs and a “lease loophole,” but you only have until Sept. 30 to qualify. You can also come and see for yourself. Bedford 2030 is having their Clean Ride and Drive event Saturday, Sept. 27, from 10 a.m. to 2 p.m., at the John Jay Farm Market in Katonah.

Back to your home, homeowners can save up to $3,200 on taxes for energy-efficient upgrades like better insulation, heat pumps, and biomass stoves or boilers, as well as a 30% tax credit for geothermal, photovoltaic solar systems, battery storage backup and even small wind turbines. If you want to keep your existing systems for now, there are credits for new boilers and furnaces, central AC, and also for heat pump water heaters, doors and windows, and energy audits.. Bedford 2030 offers free consultations with an energy coach who has a ton of experience to help guide you. 

The Pound Ridge Sustainability Committee wants our friends and neighbors to enjoy comfortable, cost-effective, clean living. We want to help you with information, advice and encouragement. We can provide you with more information about these expiring tax credits and other ways to save money by making energy upgrades.

We hope to see you at town events soon.

For more information, visit https://www.townofpoundridge.com/boardsandcommissions/expiring-tax-credits.

Bill Hewitt is a member of the Town of Pound Ridge’s Sustainability Committee, the author of the book "A Newer World – Politics, Money, Technology, and What’s Really Being Done to Solve the Climate Crisis" (2012), and has taught about energy, the environment, and sustainability at NYU’s Center for Global Affairs.