Here is another reason to consider purchasing a corn burning furnace. The following came from
www.ruralenergyproducts.com/ .
Buy Now for Immediate Discount Under the Renewable Energy Security Act
The recent passage of the Renewable Energy Security Act (RESA) means an outstanding opportunity for you to save money! You can receive an immediate consumer discount of 25% (up to $3,000) on the purchase of an energy efficient biomass heating system – i.e., stoves, fireplace inserts, furnaces, and boilers fueled by renewable energy sources such as wood pellets. In addition, residents of certain counties may be eligible for a $500 tax credit when they replace their old wood stoves with new models that meet EPA air quality standards.
Energy Bill - Q & A
How Will the Energy Bill Impact the Hearth Industry?
Note: the questions and answers below were prepared by the Hearth, Patio and Barbeque Association shortly before President Bush signed the energy bill into law. Call us at Rural Energy Products for detailed information about how the tax credits and buying incentives can benefit your purchase of an efficient and environmentally friendly heating product which burns renewable energy sources such as wood, wood pellets or corn.
The U.S. House passed a comprehensive energy bill in late April and the Senate followed by passing a different version in late June. The differences between the two bills must now be reconciled and approved by a Conference Committee before full passage. Both the House and the Senate will appoint members to the Conference Committee with the goal of producing one bill that satisfies the legislative goals of each chamber.
This year's energy legislation contains some important provisions that could significantly impact the hearth industry. Below are some Q & A about the energy policy process and the specific legislative provisions that could affect hearth industry.
Q. What is the Renewable Energy Security Act (RESA) provision? Is it only for pellet appliances?
A. The RESA provision, authored by Rep. Charles Bass (R-NH), is specifically designed to encourage consumers to purchase pellet heating systems - i.e., stoves, furnaces, and boilers. The RESA would provide for an immediate consumer discount of 25% (not to exceed $3,000) on the price of a pellet appliance, including installation. The retailer or the manufacturer (not currently specified in the legislation) will then submit proof of sale to the Department of Energy for a refund. The RESA requires an annual appropriation from Congress, through 2010, and will be managed by the Department of Energy. The RESA is designed specifically to promote pellet appliances and requires qualified appliances to meet a 75% thermal efficiency rating.
Q. What is the difference between the RESA and the national tax credit for wood stove changeouts?
A. In late June, Sen. Max Baucus (D-MT), Ranking Member of the Senate Finance Committee, attached an amendment to the energy bill (SA 800, H.R. 6) that allows consumers living in PM 2 .s and PMio non-attainment zones to receive a $500 tax credit if they replace their old wood stoves. The tax credit becomes effective once the President signs the bill and would be valid through December 31, 2008. The RESA does not require the removal of any old appliance, but does require an annual appropriation from Congress. On the other hand, the tax credit amendment does require the removal of an old appliance and does not require an annual appropriation.
Q. What products qualify for the changeout tax credit?
A. The tax credit is specific for consumers that are removing old stoves and replacing them with stoves that "comply with EPA emission performance standards." HPBA will be working with staff on the Senate Finance Committee to determine if the definition is broad enough to include pellet stoves and gas appliances that are typically exempt from EPA emission performance standards testing.
Q. Is the tax credit restricted geographically? What are the limitations?
A. The tax credit is available only to consumers that live in non-attainment zones. To view a list of counties that are currently in non-attainment, visit:
http://www.hpba.orq/govrelations/NonAttainmentListingApril2005.xls. The tax credit is only available through the 2008 tax year and expires on January 1, 2009.
Q. What is the likelihood of the energy bill's passage?
A. Many controversial issues beyond the interests of the hearth industry will ultimately determine the energy bill's fate. The House and Senate bills are vastly different on a number of sensitive political issues - e.g., liability protection for producers of MTBE, a gasoline additive that has caused environmental problems, drilling in the Arctic National Wildlife Refuge, and climate change, to name a few. If the lawmakers can agree on how to address these issues both politically and economically, then they will likely be able to pass the bill in conference.
Q. When is the Conference Committee Expected to Meet?
A. The House and Senate are expected to nominate representatives to the Conference Committee in July. The conferees are likely to meet as soon as possible. The White House is pushing lawmakers to finish energy legislation before the month-long Congressional recess in August.
Q. Who will be on the Conference Committee?
A. The Conference Committee will be chaired by Rep. Joe Barton (R-TX), Chairman of the House Energy & Commerce Committee. Each chamber will nominate lawmakers to the Conference Committee from both parties. Once the conferees are named, HPBA/PFI will inform members and encourage advocacy to these lawmakers.
Q. What is the timeline for the bill?
A. Congress is hoping to work through the issues and finish the energy legislation before the August Congressional recess, but some have speculated that it could take a few months to address all the contentious issues.
Q. How will HPBA publicize the results if the RESA and tax credit provisions are included in the final passage?
A. HPBA will be working with local affiliates and using the trade's traditional media and issuing broadcast emails and faxes to members if the measure(s) become law.
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