Energy Policy Act of 2005 – What Is It?
Energy Policy – the manner in which a given entity (often governmental) has decided to address issues of energy development including energy production, distribution and consumption.

http://en.wikipedia.org/wiki/Energy_policy

On July 29, 2005, the Energy Policy Act of 2005 was passed by Congress. On August 8, 2005, President George W. Bush signed into law. The Senate had a preliminary vote on June 28, 2005. During that time, 85 were for it, and 12 were opposed. When the Senate had their final vote on June 29, 2005, 74 were for it and 26 were opposed.

There were several provisions in the Energy Policy Act, below are just a few. There was an authorization of subsides for wind and other alternative energy procedures. There was an authorization of $50 million annually over the life of the law for biomass grants. The amount of biofuel that must be mixed with gasoline was increased. Americans are actually given tax credits for making energy conservation changes to the existing homes. The one we are all aware of is the extension of Daylight Savings time. This was extended by four to five weeks depending on the year.

As mentioned above, there are tax deductions. Some of those include $4.3 billion for nuclear power, $2.7 billion for the extension of renewable electricity production credit and $1.3 billion for energy efficiency and conservation. That is just to name a few, but let’s take a look at the tax credits a little closer. The Home Energy Efficiency Improvement Credit states that those who purchase and install energy efficient windows, insulation, doors, roofs, as well as heating and air equipment can receive a credit for 30% of the cost, up to $1500. The Residential Renewable Energy Credit is for those who install solar energy systems, such as solar water heating systems, small wind systems, geothermal heat pumps and microturbine systems. Those individuals can receive a 30% tax credit.

The Automobile Tax Credit state that those who buy or lease a new hybrid gas-electric vehicle are eligible for a tax credit. The only stipulation is the credit depends on the fuel company, the weight of the vehicle and whether the credit is being phased out. With the Plug-In Vehicle credit, there is a minimum credit of $2500 and maxes out at $7500, but this depends on the battery capacity. There are also stipulations with this. The vehicle must have four or more wheels, weigh less than 14,000 pounds and draw propulsion using a battery with at least 4 kilowatt hours. It must be charged from an external source of electricity.

References

http://www.energy.gov/taxbreaks.htm

http://en.wikipedia.org/wiki/Energy_Policy_Act_of_2005