Energy Bill Promotes Energy-Efficient Plumbing, Heating Appliances

The 2005 Energy Policy Act includes incentives for homeowners and business owners to upgrade to more energy-efficient plumbing and heating technology. Homeowners can take up to $300 in tax credits associated with the purchase of a qualified natural gas, propane, oil furnace or water heater, as long as the energy factor is at least 0.80 (business owners can take up to $900). There is a $150 tax credit for homeowners who purchase such a product that meets an annual fuel utilization efficiency rate of at least 95 (business owners can take up to $450). The tax breaks are available for property placed in service from Jan. 1, 2006, through Dec. 31, 2007.

An industry group, the Energy Efficiency Commercial Building Tax Deduction Coalition (www.efficientbuildings.org), was formed to expedite the implementation of the law.

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