Good Question

DENVER (CBS4) ― Look up on Larry Garretson's roof and there they loom -- three solar hot water heating panels silently doing their job. This is year 27. He put it up so long ago, the paperwork he's kept was generated before the age of computer printouts.

"Yeah, that was a mimeograph," said Garretson.

But they are still doing their job. The bills for the gas to heat his hot water are around $14 or $15 a month in the summer. Larry figures about $12 of that is just for the meter reading.

He fondly remembers the tax break he got that saved him thousands. But it was skewered during the Reagan Administration. Now the breaks are back.

When President Obama signed the stimulus bill in Denver on Feb. 17 there was a lot of money set aside for going green. First of all, the tax credit has been raised from 10 percent to 30 percent. The maximum has been raised from $500 to $1,500, but some improvements get you even more. Geothermal heat pumps, wind energy systems, solar water heaters, and solar panels are not subject to the $1,500 maximum.

In Wheat Ridge, where workers were recently putting up new photovoltaic panels, Vibrant Solar's Mark Simmons outlined how it works.

"Well for homeowners the tax credit is 30 percent of the after-rebate price of the system," Simmons said.

Xcel Energy provides a rebate on the cost of the system as well.

"That'll cover about half," Simmons said.

Take the figure after rebate and then calculate a 30 percent bottom line deduction off your taxes. Remember it's for systems installed this year and next, so you can't take that much of a tax credit if you had a system put in last year. The tax credit you got comes right off the bottom line of what you owe, but not until you file this year's taxes, next year.

It's even better for businesses. The tax credit is equal to 30 percent of the total cost. So that means 30 percent of the amount before any rebate. Simmons says that would include rental property operated as a business.

Congress is also starting to look at additional breaks in an energy bill. There's talk of an increase in the credit for things like solar to 45 percent. But Simmons says you might expect Xcel to reduce its rebates if that happens.

"I think what Congress, in its wisdom would tell you, is if they're already giving a tax incentive for an installation of an energy saving device today, they're not going to give you more tax savings for an energy saving device tomorrow. They may expand those that are eligible," Brad Collins of the American Solar Energy Society said.

There are still nice breaks for homeowners for other energy improvements, but note you'll want to make sure they are Energy Star labeled. Even then, not all Energy Star labeled products qualify, so check the government link below for more information on that.

Here are some of the breaks:

-- Windows and skylights, storm windows, exterior doors and storm doors - 30 percent up to $1,500

-- Metal and asphalt Energy Star qualified roofs - 30 percent up to $1,500

-- Insulation and biomass stoves - 30 percent up to $1,500

-- Efficient central air conditioning, air source heat pumps, gas furnaces, oil furnaces and hot water heaters - 30 percent up to $1,500 (but make sure you check the link below to see if the new equipment qualifies)

-- Geo-thermal heat pumps, solar energy systems and wind energy systems -- 30 percent of cost (again make sure they qualify)

-- Fuel cells - 30 percent of cost up to $1,500 per .5 kw of power capacity

Additional Resources

Check the links below for more information.

• Federal Tax Credits for Energy Efficiency
• Colorado Incentives for Renewables

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