|
Connecticut has a number of incentive, financing programs available to utility customers to assist you in purchasing equipment to lower your energy costs. There are also tax treatments available to further reduce the cost of energy improvements.
Incentive Programs
Connecticut has a number of financial programs available to utility customers to assist you in purchasing equipment to lower your energy costs.
Incentives are available for improving the energy efficiency of your home or business through the Connecticut Energy Efficiency Fund.
Incentives are available for installing Class I renewable energy systems at your home and business
Public Act 05-1 provides incentives for distributed resources, including emergency generation, Combined Heat and Power Systems, Demand Management and heat recovery that produces or saves electricity.
Public Act 05-1 provides incentives for load reduction strategies, including; Demand Management, load sheding, and heat recovery that produces or saves electricity.
The utilities and ISO New England, the independent system operator that maintains the reliability of the New England regional transmission system, jointly support two initiatives designed to reduce the regions peak electricity demand. The demand response and price response programs provide incentives to large power users to reduce their load during periods of peak demand. Demand response involves a voluntary reduce in demand within specified periods of time upon notification from ISO-NE during capacity emergencies.
The Weatherization Assistance Program is available to low income participants of the Low Income Home Energy Assistance Program (LIHEAP) known more commonly as .Energy assistance.. It is administered by the Department of Social Services through contracts with Community Action Agencies to provide services.
CT legislation passed in the fall of 2005 mandated that the state's natural gas utilities participate in energy conservation programs under the direct of the ECMB and DPUC. Previous low-income conservation programs were expanded and additional programs added for non-low income customers. Included in these programs are weatherization incentive programs and the energy conservation loan program.
Yankee Gas
Financing Programs
Energy users that are interested in financing their energy improvements can access a number of financing programs. See programs listed below:
CHFA is a leader in housing finance in Connecticut. Over the past 37 years, CHFA has helped more than 105,000 families and individuals purchase their first home, and have provided financing for the construction and/or rehabilitation of more than 28,000 units of affordable rental housing for families and the elderly. Annually updated Standards of design and construction provide for energy efficiency and conservation in the financing of all CHFA housing projects.
The Energy Conservation Loan Program is sponsored by the CT Department of Economic and Community Development (DECD) and is administered by the Connecticut Housing Investment Fund (CHIF). The loan program provides financial assistance in the form of below market interest rates to eligible building owners for residential energy efficiency improvements. The sliding-scale interest rates, depending on income qualifications, are subsidized through the Connecticut Energy Efficiency Fund (CEEF). Loans are available for single family home owners and owners of multifamily buildings. Pre-determined conservation measures will be considered for financing when installed by licensed contractors within program guidelines.
Qualified housing developments financed through the US Department of Housing and Urban Development may be eligible to receive HUD capital improvement grants. Grants can be applied to energy efficiency capital improvements such as heating systems and insulated windows. HUD field monitors should be contacted as to specific eligibility and application procedures.
A low interest loan program is available for customer-side distributed resource projects of 50 kW or greater. The interest rate will be 1% lower than the customer's applicable rate or no more than the prime rate. This program is sponsored by the Department of Public Utility Control (DPUC) under the Act for Energy Independence (AEI) legislation. Contact:
- DPUC - Maureen Hoffman - 860-827-2811
- Bank of America - Lisa Douma - 201-493-2477
The SBEA program, administered by the electric utilities under the CEEF, offers financing to off set the project costs for energy efficiency measures installed. Under program guidelines, SBEA offers a zero percent loan option for qualifying customers with a maximum loan term of 30 months. All projects must be pre-approved and verified by CEEF utility administrators. CEEF offers third-party energy assessments at no cost to determine potential savings derived from installing energy-savings measures.
A performance contract is an agreement with an energy service company (ESCO) to provide assessment, financing and completion of long term energy intensive capital improvement projects. This mechanism is generally used for capital projects which exceed $1 million but some smaller projects may be considered. This financing mechanism is particularly applicable to public projects, hospitals, educational institutions and non-profits organizations.
- For assist in contacting an ESCO: The National Association of Energy Service Companies
Tax Incentives
State and Federal tax treatment is available for energy users to help lowering the total cost of equipment used to reduce your energy costs.
The Energy Policy Act of 2005 (EPAct) created tax deductions and credits for the installations of many energy efficiency measures. These deductions and credits are applicable to both business and residential homeowners under different sets of guidelines. Homeowners can receive credits for a percentage of the cost of specific eligible measures installed. Commercial property owners can earn a tax deduction for improvements relative to ASHRAE 90.1-2004 baseline standards. These deductions fall into three areas of concentration: Interior lighting; heating, cooling ventilation and hot water systems; and building envelope. Consult a tax specialist for specific information.
Standard investment tax credits for business. This credit can be used deducted against capital improvement expenses. These expenses generally include rehabilitation expenses and specifically include solar energy systems, geothermal energy systems, and micro turbines. See form instructions for form 3468 .Investment Credit. for more information. Consult a tax specialist for specific information.
This is a corporate tax credit in which the Energy policy Act of 2005 (EPAct), Section 1301, extended the Renewable Electricity Production Credit (REPC) through 12/31/07. This is a per kWh tax credit for electricity generated by qualified energy resources. Resources included are: wind energy, geothermal energy, closed and open-loop biomass, poultry-waste energy, solar energy, small irrigation power, landfill gas, municipal solid waste combustion and refined coal. Consult a tax specialist for specific information.
This is a standard business deduction which allows you to recover your cost in business or income-producing property through yearly tax deductions. You do this by depreciating your property, that is, by deducting some of your cost on your tax return each year. You can depreciate both tangible property, such as a car, building, or machinery, and certain intangible property, such as a copyright or a patent. This deduction can apply to energy efficiency equipment as well. Consult a tax specialist for specific information.
This is a specific tax incentive designed to assist the U.S. Environmental Protection Agency (EPA) to clean up and revitalize former industrial or commercial areas that were abandoned due to concerns about environmental contamination. EPA and its federal partners believe that, with the right incentives, these former engines of industrial growth can once again generate value for both the private and public sectors. These areas are "brownfields," which EPA defines as "abandoned, idled, or under-used industrial and commercial facilities where expansion or redevelopment is complicated by real or perceived contamination." These properties may be large or small; urban or rural; former factories or warehouses. They have all been left idle due to concerns about cleanup costs and legal liabilities. Old industrial facilities which can be converted to light manufacturing and incorporate distributed generation can be considered for Brownfield Incentives along with the many other energy efficiency related tax breaks.
In the October 2005 Special Session, The CT state legislature passed Public Act 05-2 and PA 05-4. providing for a sales tax holiday on specific residential weatherization products from November 25, 2005 to April 1, 2006. PA 06-187 signed in May of 2006 established a continuation of the exemption from June 1, 2006 to June 30, 2007. This exemption covers the following home conservation items and energy-efficient appliances: Programmable thermostats; Window film; Caulking of a type marketed for preventing drafts, such as window and door caulking; Window and door weather strips, including door sweeps; Insulation, for example attic and wall insulation, spray foam insulation, water pipe insulation, heating duct insulation, and switch and outlet insulators; Water heater blankets; Water heaters; Boilers- only sales of boilers that meet the federal Energy Star standard qualify for the exclusion (Energy Star qualified boilers have annual fuel utilization efficiency (AFUE) rating of 85% or greater.); Natural gas furnaces that meet the federal Energy Star standard; Propane furnaces that meet the federal Energy Star standard; Windows that meet the federal Energy Star standard (Note that storm windows do not have an Energy Star standard and are not included in this tax exclusion.); Doors that meet the federal Energy Star standard (Note that storm doors do not have an Energy Star standard and are not included in this tax exclusion.); Oil furnaces that are not less than 85% efficient based on the AFUE rating; and Ground-based heat pumps that meet the minimum federal energy efficiency rating.
The Internal Revenue Service (IRS) will develop the final rules and forms to clarify which products and services qualify for the tax credits. Please note, not all homes, appliances, and products with the ENERGY STAR label qualify for a tax credit. |