DC Green Tax Credits

Show me the tax credits!

During an economic downturn, people are less likely to invest in energy conservation improvements for their homes and offices because the up-front costs associated with these improvements can be very high. Over the long run, however, many of these costs are mitigated by energy savings and more predictable energy prices.

If you live in the DC metropolitan area and you would like to make green improvements to your property but you need help with the initial costs, there are a number of tax credits available in Virginia, Maryland and DC. The Database of State Incentives for Renewables and Efficiency (DSIRE) is a list of available tax credits for energy efficiency enhancements of every type.

Virginia: Arlington County residential and commercial property owners can qualify for additional density and height allowances by integrating energy efficiency/renewable energy improvements that qualify for LEED Bronze, Silver or Gold certification. These height and density allowances often have a monetary value associated with them because they can be traded and sold to other property owners with a desire to expand. Virginia offers payments to residential and commercial property owners who generate electricity through solar and wind turbine generators. Virginia Natural Gas offers up to $250 to residential customers who install high efficiency natural gas furnaces and tankless water heaters. To see the full list of Virginia energy efficiency tax incentives, click HERE.

Maryland: Montgomery County residential and commercial energy buyers can get a $0.005/kWh discount on their energy bill when they buy renewable energy from certified suppliers.Maryland residents who purchase heating oil containing at least 5% biodiesel qualify for a $0.03/gallon income tax credit up to $500/year. Generators of renewable energy also qualify for payment from the state of 0.85 cents per kWh up $25 million. There are many more tax credits and loan programs available in Maryland, some on a county-by-county basis. See them all HERE.

DC: Drivers in Washington with hybrid cars or alternative fuel vehicles that qualify for federal tax credits under the Energy Policy Act of 2005 also qualify for a waiver of the vehicle excise tax in DC. A renewable energy demonstration project launched in 2006 to help fund development of renewable energy projects in the District. Interested parties must submit applications early to be considered for up to $20,000 in funding. To see all benefits offered in DC, click HERE.

Photo Credit: CC-licensed by Flickr user Eric I E