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Residents may get tax break for heating costs
Author: Emelie Rutherford
Publication: Milford Daily News Staff

BOSTON, September 26, 2005 - With Massachusetts residents expected to pay much more to heat their homes this winter, lawmakers want to offer some help -- even to those with moderate incomes.

While a bill to suspend the state gasoline tax is languishing in the Legislature, House and Senate leaders have promised swift passage of legislation to help low- and middle-income residents juggle high heating bills and other expenses this winter.

The legislation announced last week would allow for a one-time state income tax deduction of up to $800 for natural gas and heating oil expenses. It would be available to individuals with incomes up to $50,000 a year and families making up to $75,000.

"This is in recognition that it's not just folks at the very low end of the pay scale that are having hard times," said state Sen. Karen Spilka, D-Ashland. "Even people with so-called middle incomes, people are struggling, people are having a hard time."

As state Sen. Richard Moore, D-Uxbridge, put it: "These are people who foot the bill for so many of the programs; I think it's important we provide assistance for them."

Yet in parts of MetroWest, an income of $75,000 hardly affords a family a middle-class lifestyle. And families just beyond that salary cap need help too, advocates said.

"Easily in MetroWest, if you have a two-family household it's not going to do a thing," David Harrison of the South Middlesex Opportunity Council said about the income limits on the proposed tax deduction.

"There's a lot more (the state) can do for the folks who are out there and have two kids in college," said Harrison, director of energy and financial programs at the Framingham-based agency.

The legislation, unveiled last week by Senate President Robert Travaglini and House Speaker Salvatore DiMasi, also calls for increasing eligibility and funding for low-income heating assistance programs and an array of conservation incentives.

The bill includes tax credits of up to $600 toward the purchase of residential items such as insulation, digital thermostats, weather stripping and energy-efficient windows, appliances and heating systems.

It also grants tax credits to developers, owners and tenants of commercial and multifamily residential buildings who invest in measures to increase energy efficiency and reduce environmental impacts.

State Sen. Susan Fargo, D-Lincoln, has been fighting for such a "green building" incentive program.

"The decisions made by building developers and owners during the design and construction of new buildings can...greatly impact the conservation of water, energy and other critical natural resources," Fargo said.

The bill unveiled last week also calls for increasing awareness of energy discount programs run by utility providers by requiring those companies work with the state on brochures.

Educating people on existing ways to save on heating and energy costs is key, said Southborough's Catherine Weber. She said more people could see significant savings if they take steps she did, such as buying energy-efficient appliances and seeking rebates from electric utilities.

"People need to know there are options," Weber said.

And, Weber said outreach is key for many of her neighbors in Southborough, who make too much to receive the tax deduction proposed by legislative leaders.

"Everyone I talk to is fearing (the upcoming winter's high heating bills), and Southborough is by no means a poor community," Weber said.

Massachusetts homeowners are expected to pay $1,800 on average to heat with natural gas this winter, up from $1,000 last winter, and $1,600 to heat with oil, up from $1,200, according to estimates from Legislative leaders.

The price of both types of fuel soared late last week, when much of their production was shut down in the Gulf of Mexico in the wake of Hurricane Katrina and in anticipation of Hurricane Rita.

Separate legislation to establish minimum efficiency standards for appliances such as gas furnaces and commercial washing machines was approved by the House and sent to the Senate last week. The measure would save consumers and businesses $2 billion by 2030, supporters said.

Another bill to promote the use of hybrid vehicles that was put forth by Travaglini will be voted on by the Legislature's joint Transportation Committee today.

Yet a bill filed by House Republican leaders and backed by some MetroWest lawmakers to suspend the state's 21 cent per gallon gas tax through Dec. 31 has not garnered the endorsement of Travaglini, DiMasi or Gov. Mitt Romney -- leaving its future uncertain.

Southborough's Sandy Pochapin said the gas tax suspension would be a "huge help to consumers," particularly those like her who drive long stretches to work.

"I think they should seriously consider it, since the state has a surplus they could afford it," Pochapin said, adding increased fuel prices have ripple effects.

"I'm just concerned that let's say we don't go out to eat nearly as much, that hurts another segment of the economy," she said. "Obviously we're all still a lot luckier than the people in the South."

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