YOUR FUNDS
Ways you can save money on energy
REBECCA WARREN is a certified financial planner professional and certified senior adviser in Mesa. She can be reached at (480) 357-8380 or through her Web site at www.warrenfinancialservices.com.
Almost everyone has been affected by the high cost of energy — from home heating and air conditioning to fuel for our vehicles. The real question is: What can you do to help yourself? As it turns out, you can do quite a bit, and the federal government has provided some potential help. The Energy Policy Act of 2005 provides consumers and businesses with the possibility of receiving federal tax credits for adopting certain energy conservation tools (be sure to ask the person who does your income taxes if your state also offers tax credits for energy conservation). If you’re concerned about the rising cost of gasoline, and thinking about owning or leasing a different vehicle, remember that the law offers a potential credit for using a more fuel-efficient vehicle. Lease or purchase a hybrid or other high-fuel-efficiency vehicle, and you may be eligible for a tax credit of up to $3,400. If you are in the market for a car, this may be worthy of consideration. As of Dec. 31, 2007, most of the residential tax credits (windows, doors, roofs, insulation, HVAC and nonsolar water heaters) expired. On Feb. 27, the House passed $18.1 billion in renewable energy tax incentives (HR5351), including an extension of the tax credit for energyefficient home improvements. The bill is similar to one passed last year, which was ultimately removed from the final version that was signed into law in December 2007. This bill must still pass in the Senate and be signed by the president to become law. The tax credit for solar water heaters and solar panels remains in effect through Dec. 31. There are other ways to save on fuel costs, too, including easy things to do like driving a bit more carefully and keeping your vehicle maintained. Plan trips so that you are combining errands, rather than continually running out to the store. If you are working, consider car pooling, public transportation or see if you can make arrangements with your employer to telecommute. When it comes to your home, there are a number of things you can do to reduce your energy bill. Makesureyourwindowsanddoorsare sealed well and consider a storm door. See if you can adjust the thermostat just a little so that the furnace or air conditioner doesn’t operate quite so often — using a programmable thermostat can really help. Check out information from your public utility company — many will do an energy audit of your home and provide suggestions (and maybe financial incentives) for energy saving improvements. And maybe you’ll also want to consider turning that 30-minute shower into a 15-minute one, or while you’re making up your mind about what to eat, keeping the refrigerator door closed. You may never feel happy about the high cost of energy. Knowing you are using a little less energy can help. The following Web sites might also have information you can use:
• www.energystar.gov/index. cfm?c=products.pr_tax_credits, the federal government Web site for energy efficiency and energy-related tax credits.
• www.energy.gov/tax breaks.htm, the U.S. Department of Energy site, describing the Energy Policy Act of 2005.
• www.irs.gov/newsroom/article/ 0,,id=107766,00.html, the Internal Revenue Service site that provides a summary of the credit for qualified hybrid vehicles.
