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Energy:
tax credit; energy efficient products
Our Position: support
Bill Number: HB2843
Sponsor: Mason, O’Halleran, Bee, et al
Legislative Session: 2006 Legislative Session
This bill provides for a tax credit for certain energy efficient products certified as Energy Star by the U.S. Department of Energy or Environmental Protection Agency. Eligible energy efficient products and the tax credit for each are: $150 tax credit for central air conditioners and air-source heat pumps that meet the federal tax credit performance requirement; $100 tax credit for Energy Star clothes washers; and a $25 tax credit for Energy Star ceiling fans. This measure will save energy and water - a significant issue in our arid state.
Status
This bill did not make it into the mix for consideration as part of the budget, so it is very unlikely it will be resurrected.
Action Needed
This bill is dead for the session, so no action is needed.
More information
Go to http://www.azleg.state.az.us/DocumentsForBill.asp?Bill_Number=HB2843 to review the bill.
Contact
Sandy Bahr at (602) 253-8633 or sandy.bahr@sierraclub.org
Background
HB 2843 makes it easier for consumers to buy products that save energy and consequently reduce pollution associated with our fossil-fuel dominated energy generation. The bill provides a tax credit applicable to tax years 2006 and 2007. The credit will be awarded to taxpayers who purchase certain appliances for their residence:
· Central air conditioners or air source heat pumps that qualify for the federal tax credit - $150
· Energy Star-certified washing machines - $100
· Energy Star-certified ceiling fan - $25
The Department of Energy and Environmental Protection Agency run Energy Star – a program that helps make homes and businesses more energy-efficient and thereby reduces greenhouse gas emissions.
How this Bill Helps the Environment
Most of our electricity in Arizona comes from coal and nuclear power generation – both of which cause negative environmental and public health effects. Energy efficiency is a straightforward and cost-effective way to reduce our electricity consumption and the associated pollution.
If one person took advantage of the tax credits and replaced their old appliances with energy-efficient models, they would prevent 26 tons of carbon dioxide, a greenhouse gas, from entering the atmosphere:
- Central air conditioner – 23 tons
- Washing machine – 2 tons
- Ceiling fan – 1 ton
If only 1,000 people replaced all three of these appliances, they would prevent a grand total of 2,600 tons of carbon dioxide from entering the atmosphere and contributing to global warming. That’s the same as removing 4,500 cars from the road for one year!
How this Bill Saves Taxpayers Money
Energy efficient appliances still cost more than less-efficient models. However, even without the extra incentive of a tax credit, energy efficient appliances save consumers money over the long run because they decrease energy bills. For example, in Phoenix, an Energy Star-qualified air conditioner will save the consumer $400 over its lifetime, compared to a standard air conditioner. Although more efficient products save consumers money over the long-term, many people are not able to afford the initial, higher cost associated with energy efficient products; an average Energy Star qualified air conditioner will cost $4,000 compared to $2,700 for a standard air conditioner. This bill provides an extra incentive to make it easier for individuals to take look past the higher purchase price and take advantage of the money-saving and environmental benefits of energy efficient appliances in their homes.
Help give Arizona taxpayers the power to save money and reduce pollution caused by energy use! HB 2843 will save energy and prevent unnecessary pollution by making it easier for Arizona residents to replace old, energy-gobbling appliances with new, efficient models.
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