ENERGY CONSERVATION INCENTIVES

With the prospect of continuing increases in energy prices, both the Connecticut state government and the federal government have created incentives to encourage energy conservation.

CONNECTICUT INCENTIVES

• SALES TAX EXEMPTION: HOME WEATHERIZATION PRODUCTS
  Connecticut offers an exemption from the state sales tax (a.k.a. use tax) on the sale of home weatherization products. In order to qualify as a residential weatherization product, the item must be designed and marketed for residential use and not for commercial use. Items exempt from sales and use tax during the period include:
  •Programmable thermostats
  •Window film
  •Caulking
  •Window and door weather strips
  •Insulation
  •Water heater blankets
  •Water heaters
  •Boilers that meet the federal Energy Star standard. (Energy Star qualified boilers have an 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
  •Doors that meet the federal Energy Star standard
  •Oil furnaces that are not less than 85% efficient based on the AFUE rating
  •Ground-based heat pumps that meet the minimum federal energy efficiency rating.
  
  For details on the exemption, including a list of all items covered by the exemption, see 2009 Legislation Affecting the Sales Tax on Home Weatherization Products on the Department of Revenue Services (DRS) website.

• SALES TAX EXEMPTION: HIGH MILEAGE CARS
  The exemption under Connecticut Gen. Stat. §12-412(110) for purchases or leases of high mpg passenger motor vehicles is effective for purchases or leases occurring on or after January 1, 2008, and on or before June 30, 2010. More info...

• ENERGY CONSERVATION LOANS
  Connecticut offers the Energy Conservation Loan Program (ECL) and the Multifamily Energy Conservation Loan Program (MEL), which provide financing at below market rates to single family and multi-family residential property owners for the purchase and installation of cost-saving energy conservation improvements.  The ECL program is for homeowners with gross annual income at or below 150% of the State Median Income, and the MEL program is open to owners of residential properties with at least five dwelling units in the building. The loan programs are administered by the Connecticut Housing Investment Fund (CHIF) with funding from the Connecticut Department of Economic and Community Development (DECD). More info.

• SOLAR POWER SYSTEM REBATES
  The Connecticut Clean Energy Fund (CCEF) Residential Solar Photovoltaic (PV) Incentive Program offers system installation cost rebates for Connecticut residents who install PV systems on their homes. This incentive is available only through participating installers designated by CCEF. PV systems may be of any size but must be connected to the electric grid. Rebate amounts are calculated based on the Watts produced by the new PV system, up to a maximum of $25,000 per household. Homes can be one to four family residences. More info...

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SOURCES: Connecticut Department of Revenue Services (DRS), Connecticut Housing Investment Fund (CHIF), Connecticut Clean Energy Fund (CCEF), American Council for an Energy-Efficient Economy (ACEEE), Connecticut Light and Power Company (CL&P)

PREPARED BY: 211/kq
CONTENT LAST REVIEWED: January2012