The extract below contains the key provisions of the new US energy act. It is progressive and rewards the right things (at least in the brief reading that i have given it). Surprising that this was passed in GB-2's administration :) We need something very similar in India as our current utilization is pathetic and the devices that we use are not constrained to conform to any kind of energy efficiency. Sometimes i think that this is a result of industrial lobbying and an unenlightened consumer class. An act like this will make genuine energy efficient products cheaper than their energy guzzling brethren inspite of having better technology. Something like what the Maruti did to the Ambassador. The government is contrast is withdrawing the subsidies that were granted for household energy generation and moved most of the subsidy support to industrial houses that invest in power farms. What we need is clear legislation that discriminates positively in favour of renewable energy devices. This will mark a return to policies that make sense in this energy hungry world.
The Energy Policy Act of 2005 (USA), includes many tax provisions to aid energy exploration, delivery, and conservation.
Key provisions of the Act include:
* New tax credits for the purchase of hybrid, fuel cell, advanced lean burn diesel and other alternative power vehicles. The size of the credit varies depending on the weight class of the vehicle and the rated fuel economy. The credit applies to vehicles placed in service after 2005, with termination dates varying with the type of alternative power vehicle. Additionally, (current law deduction for certain clean fuel vehicles and refueling property) sunsets after 2005 (instead of after 2006, as under current law).
* New 30% tax credit for the purchase of qualifying residential solar water heating, photovoltaic equipment, and fuel cell property. The maximum credit is $2,000 (for solar equipment) and $500 for each kilowatt of capacity (for fuel cells). The credit applies for property placed in service after 2005 and before 2008.
* New 30% business tax credit for the purchase of fuel cell power plants and a 10% credit for the purchase of stationary microturbine power plants, effective for periods after Dec. 31, 2005 and before Jan. 1, 2008, for property placed in service in tax years ending after Dec. 31, 2005.
* New 10% personal tax credit for energy efficient improvements to existing homes. The lifetime maximum credit per taxpayer is $500 and applies for property placed in service after Dec. 31, 2005 and before Jan. 1, 2008.
* New business tax credit for the construction of new energy efficient homes. The credit is either $2,000 or $1,000 per home, depending on the type of home and the energy reduction standard it meets. The credit applies to homes whose construction is substantially completed after Dec. 31, 2005, and which are purchased after Dec. 31, 2005 and before Jan. 1, 2008.
* New deduction for energy efficient commercial buildings meeting a 50% energy reduction standard. The deduction (generally $1.80 per square foot, but 60Â¢ per square foot in some cases) is effective for property placed in service after Dec. 31, 2005 and before Jan. 1, 2008.
* New manufacturers' tax credit for energy efficient dishwashers, clothes washers, and refrigerators manufactured in 2006 and 2007.