January 2010, Compiled by Morgan Lashley, N.C. Association of Electric Cooperatives

• Introduction: Federal and state energy-related tax incentives
• A Few Guidelines
• 2010 Summary of Energy-efficiency Tax Credits (both federal and NC)
• Download the article as a

Federal and state energy-related tax incentives

Investing in renewable energy and energy efficient home

improvement projects may help stimulate our economy and earn you some energy-related tax breaks. The 2009 Recovery and Reinvestment Act signed last February extended and added to many of the incentives existing before. Work completed in 2009 earns credits on tax returns filed in 2010.

A tax credit is generally more valuable than an equivalent tax deduction because a credit lowers your taxes dollar-for-dollar, while a deduction lowers your taxable income.

Verify all tax-related information with a tax advisor.

This chart reflects a summary of available tax credits on both the federal and North Carolina (as noted) levels for energy-efficiency projects or purchases. For more detailed information on federal energy-related tax incentives, visit:
www.energystar.gov. Find information on state tax incentives at www.dsireusa.org.