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01/10/2006

PUC promotes new energy efficiency tax credits

South Dakota’s Public Utilities Commissioners are encouraging South Dakotans to look into the new energy efficiency tax credits, which took effect Jan. 1, with the goal of saving both energy and money.

President Bush signed the law in August, 2005 making these tax credits available to both families and businesses.

“This is the most significant energy legislation passed at the federal level in the last 10 years,” said PUC Chairman Bob Sahr. “Therefore, we want to make sure South Dakotans are aware of and take advantage of this opportunity. The tax credits apply to the purchase and installation of appliances, as well as to vehicles, which provide energy efficiency.”

“Examples of the tax benefits range from $50 for purchasing an air circulating fan, to $2,000 for the purchase of solar water-heating equipment,” PUC Vice Chair Dustin Johnson said. “These tax credits will provide help with the purchase of many big-ticket energy efficiency items and they’re definitely worth looking into as far as cost-savings.”

“Anyone building a new home will want to check out these tax credits,” said PUC Commissioner Gary Hanson. “Reductions are allowed on a dollar-for-dollar basis, up to a maximum amount allowed. If you are in the market for a new roof, heating or cooling equipment, windows, insulation or doors, you could receive a savings of $500 on your federal tax bill.”

Businesses can also reap benefits via these tax credits. For example, installing eligible solar equipment on a building could provide a 30 percent tax credit. Manufacturers of energy efficient products or appliances can receive tax credits. And companies that build energy efficient homes can receive business tax credits.

Before making any investments for tax credit purposes, contact your tax professional for specific information. More information on these tax credits can be found via links at the PUC’s Web site: http://www.puc.sd.gov.