Tax Incentives, Grants, Loans

There are often tax incentives, grants, low-interest loans and other attractive options for those planning energy-efficiency and alternative-energy projects. The federal and state governments and the private sector offer various financing opportunities to West Chester homeowners, owners of commercial buildings and even commercial tenants.

Here are some of the different incentives, programs and funding sources for West Chester’s various sectors:

HOMEOWNERS

PECO is introducing PECO Smart IdeasSM, a program that shows you new ways to use less energy and hold onto more of your hard-earned dollars. The PECO Smart Home E-Audit shows you how you can use less energy and save more money with PECO Smart Ideas rebates, cash incentives and energy saving tips. Go to the PECO Smart Ideas site to learn more.

The federal government recently extended federal tax credits for the installation of qualified solar-water heating, photovoltaic (residential electricity) and fuel-cell systems. The credits are available for systems placed in operation before Jan. 1, 2009. The tax credit is for 30 percent of the cost of the system, up to $2,000. The credits are currently listed on IRS tax form 5695, Residential Energy Credits.

Pennsylvania provides low-interest loans to all Pennsylvanians regardless of income through Keystone Help. Keystone Help provides these loans to Pennsylvanians who want to make their homes more energy efficient. Eligible improvements include high-efficiency heating and air-conditioning systems, insulation, windows and doors.

Low- and moderate-income homeowners can receive energy-efficient measures free of charge through Pennsylvania’s Energy Weatherization Assistance Program.

OWNERS OF COMMERCIAL BUILDINGS

The federal government provides tax incentives for commercial building owners who install HVAC systems, building envelopes and lighting systems that meet certain energy efficiency requirements. Specifically, building owners can earn a Federal Corporate Tax Deduction of 60 cents a square foot for any one of these qualifying systems or up to $1.80 a square foot if all three systems qualify. At present, the credits are available for systems placed in service between Jan. 1, 2006, and Dec. 31, 2008. For more information:

• Tax Incentives Assistance Project (TIAP)
• Federal Tax Credits for Energy Efficiency
• Commercial property owners qualify for energy efficiency deduction (IRS)

Businesses can recover investments in certain properties through Federal Tax Depreciation for Alternative Energy Systems. Depreciation schedules vary from three to 50 years depending on the type of property. Various types of alternative energy systems can be depreciated over five years: solar, wind, geothermal, fuel cells, microtubines and solar hybrid lighting technologies. Go to the following Web sites for more information:

• Publication 946 – How to Depreciate Property
• Instructions for IRS Form 4562
• IRS Form 4562 – Depreciation and Amortization

The federal government also recently extended Federal Tax Credits for Businesses that install HVAC systems, building envelopes and lighting systems that meet certain energy efficiency requirements. The specifics of the tax credits given are similar to those available to homeowners.

The Sustainable Development Fund is a part of The Reinvestment Fund, private nonprofit organization headquartered in Philadelphia. The Sustainable Development Fund offers flexible, low-cost financing for energy efficiency projects in West Chester, and developers who meet Energy Star requirements are eligible. The Sustainable Development Fund offers construction financing, term loans, lease and energy performance financing and pre-development loans.

Small Business Energy Efficiency Grant Program

Department of Environmental Protection acting Secretary John Hanger is proud to announce an opportunity for Pennsylvania’s small businesses to improve their energy efficiency and manage higher energy prices. ...

The grant application and guidelines are available online at www.depweb.state.pa.us, keyword: Small Business Energy Efficiency Grant, or by contacting the Department of Environmental Protection, Office of Energy and Technology Deployment, 15th Floor, Rachel Carson State Office Building, 400 Market Street, P. O. Box 8772, Harrisburg, PA 17105-8772

NONPROFIT ORGANIZATIONS

The Sustainable Development Fund offers loans to nonprofit organizations to pay for energy efficiency improvements and energy conservation practices designed to reduce facilities’ energy costs.

FOR ALL SECTORS

Under Pennsylvania law, wind turbines and related equipment (including towers and foundations) may not be counted by tax assessors when setting property values. The law states that the valuation of real property used for the purpose of wind-energy generation “shall be developed by the county assessor utilizing the income capitalization approach to value.”

For more information, contact the Pennsylvania Department of Revenue, Taxpayer Service and Information Center, P.O. Box 280610, Harrisburg, Pa. 17128-0610. The phone number is 1-717-787-1064, or online at www.revenue.state.pa.us