By Jenevra Wetmore

Economic incentives make 2024 a great year for you to invest in new efficient technology. Photo: Drive Electric Vermont

As we draw near the end of 2023, we are approaching the end of the hottest year on record since record keeping began in 1880, according to the National Oceanic and Atmospheric Administration (NOAA). As temperatures rise, the federal government and state of Vermont have created incentives to fight climate change. Governments are making it easier and cheaper to purchase renewable technology to encourage people to “go green” quickly. The more quickly we reduce emissions now, the less damage we will see in the future.

This coming year there are tax incentives and money back deals to get you started on all types of green projects, from home weatherization to electric vehicles. Every New Year brings changes to incentives to cut carbon emissions– read on for some of the opportunities available to Vermonters in the New Year:

SOLAR

The federal Investment Tax Credit (ITC) is the most well-known financial incentive for homeowners to go solar. Thanks to the Inflation Reduction Act, passed in 2022, the ITC is 30%, meaning that 30% of the cost of a solar photovoltaic (PV) system, home batteries, or a geothermal system can be claimed on federal income taxes. This is a dollar-for-dollar reduction on your income tax!

In Vermont, if your solar array produces more electricity than you use at any given time, that power is sent to the grid and your utility company is required to credit your electricity bill by a certain amount. In addition, there is no sales tax assessed on solar installations, and the additional value the system adds to your home is exempt from state property taxes.

ADVANCED WOOD HEATING

The Wood and Pellet Heater Investment Tax Credit covers 30% of the purchase and installation costs of home heating and hot water systems that utilize wood pellets, chips and cordwood. There is an annual cap of $2,000. The State of Vermont also offers incentives for woodstove changeouts and repairs. You can get a $400 instant discount at participating retailers for replacing an old wood or pellet stove with a new highly efficient stove. If you install a wood pellet furnace or boiler for central heating, you could get $6,000 back from the state.

ELECTRIC VEHICLES

There are many available incentives for electric vehicles (EVs). There is a federal tax credit for used EVs of 30% up to $4,000, with an income cap for the buyer. Starting in 2024, this credit can be transferred directly to dealerships for discounts at point of sale. There is also a tax credit of 30% up to $7,500 for new EVs, but there are various requirements to receive the full credit. You will need to check that the car is eligible, that you meet income limits, and that final assembly of the vehicle took place in the US.

The State of Vermont also offers additional EV incentives for new EVs. Interested Vermonters are encouraged to take advantage of this offering while funds are available. The amount of your specific incentive depends on income level and whether the vehicle is hybrid plug-in electric, or all electric. Lower income filers are also eligible for higher incentives. If you are looking for a used car, Vermont also offers an incentive for used hybrids and EVs, called MileageSmart. The MileageSmart Incentive is worth 25% of the initial price of the vehicle (excluding taxes and registration fees), up to $5,000.

WEATHERIZATION

Weatherization is on many people’s minds as temperatures dip down to the single digits. Vermont’s Weatherization Assistance Program (WAP) provides free home weatherization if you meet household income limits. On average, this program makes about $8,500 worth of improvements per home and reduces drafts by about 40%. Visit https://dcf.vermont.gov/benefits/weatherization for more information and to see income guidelines.

The Home Performance with Energy Star (HPwES) program connects homeowners and certified contractors to assess home energy use and perform energy improvements. Currently homeowners can receive 75% of project cost back, up to $4,000. Income-eligible Vermonters can receive 75% of project cost back, up to $9,500. Available while funds last. Details at www.efficiencyvermont.com/rebates/list/home-performance-with-energy-star. There are a myriad of incentives, rebates, and tax credits available for upgrading your energy use in 2023. The opportunities outlined here are just a selection. Visit efficiencyvermont.com to learn about more incentives for technology such as heat pumps, lighting, air conditioners, thermostats, furnaces, boilers and more. On average, each Vermonter is responsible for over 15 tons (30,000 pounds) of greenhouse gas emissions of air pollution per year. Make