CAI-NJ Apr. 2022

“Currently, federal incentives on the

HIDDEN MONEY... from page 28.

Credit” offers individuals purchasing a qualifying electric vehicle an incentive of up to $7,500 issued via a tax credit. Another key area for savings deals with improvements made to one’s home. Any individual that has made qualifying energy-saving improve ments to their residence during the tax year is eligible for a credit on their federal tax return. The credit has a lifetime limit of $500. Common improvements that may qualify for this credit include, but are not limited to windows, doors, skylights, roof ing (depending on roofing materials), insulation, HVAC systems, and water heaters. It is important to remember that to qualify for the credit, the components and materials used must meet certain energy efficiency rat ings. Another area that has potential

installation of new solar panels...are calculated as a tax credit in the amount of 26% of qualifying purchase and installation costs.”

car manufacturers have fully commit ted to producing only electric vehicles in the years to come. In support of these green initiatives, both state and federal agencies have initiated incentives to help entice individuals and businesses to capitalize on these potential energy savings (and environ mental improvements!). The “Charge Up New Jersey” program offers an incentive for individuals to purchase qualifying electric vehicles from a New Jersey dealership or showroom. The incentive could be up to $5,000. In addition, the state has also waived sales and use tax on the purchase or lease of qualifying electric vehicles. In addition to this state benefit, the “Federal Plug-In Electric Drive Vehicle

for significantly higher savings is the installation of solar panels. Currently, federal incentives on the installation of new solar panels (assuming the panels installed meet the required specifications) are calculated as a tax credit in the amount of 26% of quali fying purchase and installation costs. The Internal Revenue Service (IRS) provides a list of qualified homes eli gible for this credit, which include sin gle-family homes, houseboats, mobile homes, cooperative apartments, con dominiums, and manufactured homes. Incentives for Community Associations There are also several financial pro grams and incentives that are made available to community associations. As discussed above, one of the “hot topic” items over the last few years has been the expansion of electric vehicles. It seems that wherever we go, charging stations are beginning to appear to accommodate the large influx of electric vehicles. With respect to associations, the state offers incen tives to “multi-unit dwellings” for the installation of electric vehicle charging stations. If a charger meets the qual ifications of the program, the entity

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