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Capital connects members to STIMULUS SAVINGS

With the passage of the federal stimulus

“The state of our economy has left many Capital Electric members searching for ways to make ends meet,” explains Member Services Director Doug Mork. “Making the most of each energy dollar is high on everyone’s list of concerns. We’re ready to help explain which parts of the stimulus bill may affect our members; especially if they are considering energy efficiency improvements.”

Investing in a few basic measures to secure a home from outside elements could provide major benefits. The U.S. Department of Energy (DOE) says weatherization — the process of sealing air leaks and properly insulating a home — can reduce heating bills by up to 32 percent, resulting in an average energy savings of $358 per year.

“You can be more comfortable and save on your energy bill while improving the environment,” Mork adds. “Making our nation more energy efficient takes all of us doing our part, and the stimulus bill provides new ways for you to save money while you’re doing it.”

As a result of the stimulus package, the DOE’s Weatherization Assistance Program is expanding with a goal of weatherizing 1 million homes per year. In the past, only households that earned up to 150 percent of the national poverty level were eligible to participate. The stimulus bill extends eligibility to those with incomes below 200 percent of the national poverty level. For a family of four, that’s an income limit of $44,100.

Cal Steiner, division of community service program manager of the N.D. Department of Commerce, explains that each home has different energy efficient needs. Because of this, the process to weatherize a home through the program will vary.

“Program participants receive a professional energy consultation with an analysis of energy bills, a blower-door test to locate air leaks, and advice on how to be more efficient. Workers then arrive to make energy upgrades like insulating walls and roofs, sealing air leaks, and installing more efficient heating and cooling systems,” he says.

For members not eligible for federally funded programs, the stimulus plan provides a homeowner efficiency tax credit of up to $1,500, or 30 percent, of the cost for new energy upgrades, including weatherization activities as well as installation of efficient heating, ventilation and air-conditioning systems.

Efficiency tax credits were already available for 2009, but carried a $500 limit (with additional caps for certain types of upgrades) and only covered up to 10 percent of a member’s investment.

“You may have looked at the tax credit in the past and thought it wasn’t worth it,” Mork notes. “This change effectively triples the amount of financial investment you get credit for, and coupled with how much you can save on energy costs each year, it makes these efficiency measures much more affordable.”

Tax credits directly lower a member’s federal income taxes and are generally more valuable than tax deductions because they reduce taxes owed dollar-for-dollar. In contrast, a tax deduction, like a home mortgage or charitable gift, lowers taxable income and may only offer small savings. For example, a $1,500 tax deduction for someone in the 25 percent tax bracket would lower taxes owed by $350; a $1,500 tax credit for energy efficiency efforts will lower taxes owed by $1,500!

To apply for the weatherization services in North Dakota, eligible members should contact Cal Steiner at (701) 227-7415 or visit www.ndwap.com to complete the weatherization assistance application form online. Another excellent resource for questions on the weatherization program or for assistance in applying is to call the Community Action Program Region VII office at (701) 258-2240 or (800) 223-0364. Community Action’s Web site is www.cap7.com.

To learn about other ways Capital Electric Cooperative is helping members save on energy use, click here.