Winter heating bills drive Montana residents to energy efficiency
 
Nov 6, 2005 - Independent Record, Helena, Mont.
Author(s): John Harrington

 

Nov. 6--In the last two-plus decades, Mike Gardner, owner of Target Energy Systems, has rarely seen such demand for his firm's home improvement services: insulation, windows, doors, weather stripping and other improvements designed to make homes more energy efficient.

 

"I've been doing this for 22 years, and this is like it was back in the early '80s," he said. "It's directly related to both the amount of hype and the reality of higher energy prices."

 

Gardner says that while everyone's aware their energy bills are rising, not everyone knows there can be financial benefits to making home improvements beyond less electricity and gas use. Both the power company and the government want people to use less energy, and have put various incentives in place to encourage that behavior.

 

"I'm running into all kinds -- situations where people are not aware of the incentives, and situations where they know more about them than I do," Gardner said. "Some people have investigated them and are up to speed, and others are just motivated by other things, like warmth and comfort."

 

Starting last month, NorthWestern Energy began offering rebates to people for making what the utility views as significant improvements to make gains in energy efficiency.

 

"We have identified the investments that people are going to make that will result in the most payback and see the most savings," said Deb Young of the company's regulatory support services staff.

 

NorthWestern offers rebates for two upgrades to owners of existing gas-heated homes:

 

--Insulation. Depending on the size of the home and the amount of insulation in place already, this rebate can amount to several hundred dollars.

 

For instance, a 1,400 square-foot attic with no insulation that a homeowner insulates to a value of R-38 qualifies for a $588 rebate, Young said. A 1,000 square-foot basement with no insulation that's subsequently brought up to R-19 earns a $290 rebate.

 

Depending on what's already in place, additional insulation for crawl spaces, rim joists or above-grade exterior surfaces may qualify as well.

 

--Programmable thermostat. Anyone installing an Energy Star- rated programmable thermostat becomes eligible for a $40 rebate from NorthWestern. The thermostat can be programmed to suit a family's schedule, automatically lowering the temperature when nobody's home during the day before snapping on in the evening.

 

Information and rebate forms for this program, which runs through April 30, are available at www.northwesternenergy.com/ naturalgas or by calling (800) 823-5995.

 

The utility isn't the only place for cash incentives to decrease your home's energy use. The state of Montana also makes it worthwhile beyond the power bill savings to invest in efficiency. Gerard Poore, a CPA with AZ & Co. in Helena, said there's a $500 state tax credit -- a subtraction from your total tax bill -- available for people making energy efficient home improvements.

 

The credit is good for either 25 percent or $500 worth of an improvement, whichever is less. So a $1,000 upgrade to more efficient windows, for example, would earn a $250 tax credit. Poore said asking about any home improvements done in the last year is a standard part of preparing people's returns, and that lots of taxpayers don't realize their projects may qualify for tax credits. He estimated that only 5 percent of the returns he prepared last year took advantage of the credit.

 

"What I've seen in the past is people are doing ordinary upgrading of their homes, and they're not aware that these credits are available," he said.

 

Starting Jan. 1, the federal government is getting into the act. Although the tax credit isn't as generous as what Montana offers, the two taken together will mean additional savings.

 

The Energy Tax Incentive Act of 2005 offers credits on federal taxes due for various energy use improvements to a homes doors or windows, as well as insulation, roofing, furnaces, heat pumps and boilers. The maximum credit in any two-year period is $500.

 

 


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