Tax Credits For Energy Efficient Home Improvements Slaughtered

President Obama likes to tout his green credentials, but one has to really wonder about him. His tax deal in December effectively slaughtered the energy efficiency tax credits.

Tax credits are used like carrots in front of a mule by the government. They get us to undertake certain steps that we might not otherwise do. One example is buying hybrid cars. They were on the market for much longer than most people realize. They only really became popular when the government started offering big tax credits to those that bought them. 

The same has been true with energy efficiency. The cost of oil and general energy resources has caused hand wringing for years. The government has responded by providing tax incentives in the form of credits to entice people to use less energy. The idea was that anyone who used approved appliances, products or materials could claim a tax credit up to 30 percent of the cost incurred up to a total of $1,500. Since a tax credit is deducted dollar for dollar from the amount you are supposed to send in Uncle Sam, this was a huge incentive. 

The tax deal reached at the end of December 2010 slaughtered the energy efficiency tax credits. The deal extended the Bush Tax Cuts, but simply slaughtered this tax credit by a whopping 66 percent. The amount that can now be claimed is down to 10 percent of the cost with a cap of $500. Given the cost of energy efficient appliances and such, it is a fairly brutal cut. 

President Obama was supposed to bring change. Well, he’s brought it in a form most people concerned about the environment and energy issues would never have imagined. Once again, he’s slammed them and their causes. It is enough to make an old Oil Man like Dick Cheney smile!