There is much discussion these days about green building, environmentalism and minimizing your "carbon footprint." For many of us, this esoteric conversation seems distant and inapplicable to our daily lives.

But there can be big savings in green building and green products.

Many states offer tax incentives to those who build or remodel their homes using green building techniques.

Homeowners who choose to remodel or build to increase energy efficiency and use environmentally friendly products are eligible for any number of tax rebates and write-offs.

In looking at the DSIRE website, the Database of State Incentives for Renewable Energy, one finds lists of all the states' different incentives. The states have them split up by residential or commercial properties, and the incentives vary according to the project you take on.

Take Texas, for instance. Under Section 16 of HB 3693, purchases of certain energy-efficient products during Memorial Day weekend are exempt from state sales and use tax. This amounts to a three-day tax holiday beginning on the Saturday preceding the last Monday in May (Memorial Day) and ending on the next Monday.

The incentive is available for products that meet Federal Energy Star requirements, and includes air conditioners, refrigerators, clothes washers and energy-efficient light bulbs, among other products.

Texas also offers a renewable energy systems property tax exemption, available on both commercial and residential properties, which allows an exemption of the amount of the appraised property value that arises from the installation or construction of a solar or wind-powered energy device.

California wants to entice residents to switch to renewable energy systems, too. Homeowners who install small wind, solar or fuel cell electricity systems can get cash back for their efforts. This site can help Californians find out more.

The Federal government offers incentives for going green too.

The Residential Solar and Fuel Cell Tax Credit established a 30 percent tax credit up to $2,000 for the purchase and installation of residential solar electric and solar water heating products. Though this credit was set to expire at the end of 2007, it has been extended through December 31, 2008.

And the Federal government also offers tax help for businesses that get their green on.

The Energy Policy Act of 2005 established a tax deduction for energy efficient commercial buildings. This works as a tax deduction of $1.80 per square foot for owners of new or existing buildings who install interior lighting, building envelopes, or heating, cooling ventilation or hot water systems that reduce the building's total energy and power cost by 50 percent or more.

This can work out to big savings for businesses that invest in energy efficient products, not only in tax write-offs, but in long-term energy costs. Not to mention, in our energy conscious climate, consumers are increasingly aware of, and looking for, businesses that put off green vibes. Going green can be good marketing.

The sheer volume of information on tax write-offs and rebates can be daunting, so homeowners should contact a builder familiar with these techniques, and when filing your taxes be sure you consult an accountant with experience in this field.

Published: February 5, 2008

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