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Tax Laws and Renewable Energy

Elaborate and discuss the role and impact the tax laws have made or could make in motivating and encouraging the shift towards the use of renewable energy and enhancement of green technology more effectively.

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The tax laws have made an extensive impact to motivate and encourage consumers to shift their spending patterns towards making energy efficient choices. The residential energy credits have made a huge impact on the use of green technology. Taxpayers can take advantage of tax credits on a variety of energy efficient purchases, including insulation, exterior windows, doors, natural gas, propane, oil furnace, and hot water boilers, certain fuel cell property costs, and several other energy efficient systems, all designed to conserve energy, which in turn is shifting the current population towards a cleaner, greener society.

The tax credits are available as part of the American Recovery and Reinvestment Act of 2009, and are available to the majority of taxpayers.
The IRS has made the credits as attractive as possible, as key motivators for green purchases have. To encourage the purchase of HVAC systems, insulation, certain roofing materials, windows, doors and water heaters, the tax credit includes ten percent of the total cost to the consumer, up to a limit of $00, or a specific amount from $50-$300. The credit can be utilized until its expiration, on December 31, 2011.

To motivate consumers to make energy efficient purchases of certain solar energy systems, heat pumps, and small wind turbines, the IRS offers a tax credit of thirty percent of the cost of purchase, with no limit, up to a total of $500 per .5 kW of power capacity. Purchases qualify if made ...

Solution Summary

The solution discusses the role tax laws have in renewable energy and green technology use. Includes 3 references and a Word-formatted attachment.