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Legislature rolls out program to address expected rise in energy bills this winter

BOSTON, September 22, 2005 - The recent destruction in the Gulf of Mexico caused significant increases in prices of crude oil and natural gas. This rise will most likely lead to increases in heating costs for Massachusetts residents this winter. Today, Senator Richard T. Moore (D-Uxbridge) and the Legislature announced a comprehensive program of tax credits and incentives to help Massachusetts consumers deal with soaring energy costs this winter.

“The quick response from the Legislature will help residents deal with the rising cost of energy and to encourage conservation this winter,” said Senator Moore. “If this winter is anything like last year and if the heating prices are expected to increase sharply as predicted, then residents and businesses of Commonwealth should take advantage of this program.”

Before Hurricane Katrina devastated the Gulf Coast’s oil production lines, the U.S. Department of Energy estimated that a typical Northeast customer would pay $1,486 for heat this winter, a 16% percent increase over last year.

At a State House hearing held this week by the Joint Committee on Telecommunications, Utilities & Energy, industry analysts predicted that Massachusetts homeowners who use oil heat will pay 31% more than last winter. Natural gas prices in the Commonwealth are also expected to rise an average of 26%.

The H.E.A.T program (Home Energy Assistance & Tax Relief ) will ease the financial burden for millions of homeowners by investing roughly $80 million to help consumers pay for home energy costs, provide incentives to help them make their homes more energy efficient and bolster the home energy assistance program for low-income residents.

Home Heating Energy Tax Deduction - commits $39 million for tax deductions up to $800 for home heating oil and natural gas expenses for homeowners. The deduction will help individuals who make less than $50,000 a year and families with incomes up to $75,000.

Energy Efficiency Tax Credits - commits $18 million for tax credits up to $600 towards purchases on residential energy efficient items such as home insulation, new window installation, advanced thermostats, weather stripping solar powered heating systems, energy efficient furnaces and boilers, energy efficient appliances and other approved purchases that help households use less gas and oil. The tax credit can be applied to all residential property. 

Low-Income Home Energy Assistance Program - invests $20 million towards the state’s assistance program (LIHEAP). The program, which has served as many as 133,000 low-income households, pays fixed amounts based on the household income towards oil, propane, wood, coal, gas or electric bills. Households with incomes up to 200 percent of the Federal Poverty level can receive maximum benefits of $545 for electric or gas heat, and a maximum of $675 for oil, propane or kerosene heat.

Senator Michael W. Morrissey (D-Quincy), Chair of the Telecommunications, Energy and Utilities Committee said, “With federal funding for these important programs diminishing over the years, it is important we continue to step-up on the state level to provide this much needed assistance especially during the cold New England winter months.”

The legislative energy package also includes:

  • Expanding the one-time tax credit for homeowners who install renewable energy generating units from 15% or $1,000 to 40% or $3,200 (whichever is less.)
  • Establishing a 15% or $300 tax credit for businesses that install solar water heating systems. (Currently businesses have to apply for a limited number of grants through the Renewable Energy Trust Fund.)
  • Extending tax credits to developers, owners and tenants of multi-family and commercial residential buildings who invest in measures to increase energy efficiency and reduce environmental impacts.
  • Authorizing the Renewable Energy Trust Fund to establish a partnership between state agencies and private organizations to further technological advances in developing fuel cell technology.
  • Generating public awareness and participation for energy discount programs run by utility providers. Utility companies would be required to work with appropriate state agencies to produce a brochure detailing discounts and rebates available to homeowners who take energy-saving steps.

More information on Senator Moore’s issues can be obtained by checking his web site www.senatormoore.com. 

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