An energy tax credit can be a federal tax credit that is assigned to provide individuals with tax credits for energy efficiency. Two recent tax credits for energy efficiency that were passed during the start of the 21st Century were the Non-business Energy Property Tax Credit, a part of the Energy Policy Act of 2005, and the Federal Roofing Tax Credits for Energy Efficiency, part of a 2009 twofold plan developed by the United States Federal government.
Both of these tax credits for energy efficiency are used to promote renewable energy development. These energy tax credits help to promote renewable energy development to cover the advancement, capacity growth, and the use of renewable energy sources.
These tax credits for energy efficiency are linked to concerns about mitigating climate change, the creation of greenhouse gases, the use of fossil fuels, and addressing the social, environmental, and political consequences of continued use of fossil fuels or nuclear power.
Tax credits for energy efficiency may be assessed for the items that are purchased, such as buying an Energy Star appliance or using Energy Star rated materials. However, there are many restrictions placed on collecting an energy tax credit.
The restrictions placed on collecting the Federal Roofing Tax Credit for Energy Efficiency requires that the roof be made out of particular materials, be applied between a January 1, 2009 and December 31, 20100, and be the taxpayer’s primary residence.