Budget Deal Provides Tax Breaks For Green Energy
Whether you're a homeowner who bought an energy-saving refrigerator last year or a company hoping to build a wind farm, the tax package Congress just approved may give you a reason to cheer.
"It's got something in there, a Christmas gift if you will, for almost everyone — American homeowners, workers who commute via transit, and manufacturers of efficient equipment like clothes washers, dryers, refrigerators," says Kateri Callahan, president of the Alliance to Save Energy.
Homeowners can save up to $500 on taxes for 2012 or 2013 for installing more insulation or an energy-efficient furnace, for example.
The tax package is especially meaningful to clean-energy businesses that rely on tax benefits to stay profitable.
Jennifer Case, CEO of New Leaf Biofuel, and her colleagues had been betting on Congress coming through for them, so they are breathing a huge sigh of relief. The San Diego company turns used cooking oil into diesel.
"Everybody was thrilled, and now it's back to work today to sell the fuel that we now can afford to make," Case says.
Last year was a difficult year for New Leaf because Congress let a $1-a-gallon tax break for biodiesel expire. Even so, Case's company decided to triple the capacity of its plant. Case was hoping Congress would reinstate the benefit, and it did.
"I think coming to work every day is a gamble, but so far it's been a good gamble," she says.
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