Posts Tagged tax exemption

Energy Grants, Tax Savings, and Incentives in Connecticut

Posted by on Saturday, 22 May, 2010

Connecticut residents have the opportunity to receive lots of money for setting up renewable energy systems and making their homes and businesses more energy efficient. The state of Connecticut provides funds through several of its own programs, and power companies also provide support.

Connecticut Light and Power provides information about grants as well as energy conservation. Grant programs pay to conduct an energy audit of a residence, where the state sends a worker out to check for improvements which can make a big difference in an energy bill. State workers provide services including sealing gaps in walls and roofs to remove leaks that let in cold air, install systems such as water conserving shower heads and faucets, and replacing inefficient incandescent bulbs with compact fluorescent bulbs which the state provides. There is an income restriction on this program, it requires an income of less than $30,485 for a single person and the restriction increases by about $10,000 for each additional resident in a household up to six people.

Connecticut offers a unique implementation of the federal energy efficient appliance rebate program. An online store provides Connecticut residents with an opportunity to purchase new appliances, such as refrigerators, washing machines, and compact fluorescent lights, with the rebate included in the purchase price. This makes it much easier to receive the rebate for purchasing an item and makes it obvious which appliances are eligible for subsidies. The Energy Federation sells energy efficient light bulbs through this program at a discount, available to all customers of Connecticut Light and Power.

Tax benefits are available for Connecticut residents who purchase and install energy generating equipment such as solar panels and geothermal heat pumps. Buyers of these items do not pay state sales tax on the items, and do not pay the state use tax. The tax free status includes the expenses of hiring a contractor to install the equipment. This is a full tax exemption, and does not have a maximum income requirement or a limit to the amount of tax benefits the purchaser can claim.