{news} Shapiro on energy efficiency and tax relief

[David Bedell]

>From The Stamford Advocate, 10/10/05

Shapiro: Reward energy efficiency
Mayoral hopeful favors tax relief for homeowners

By Doug Dalena, Staff Writer

STAMFORD—Saying his proposal will save taxpayers money twice, Green Party 
mayoral candidate Darek Shapiro entered the tax-relief debate by linking tax 
credits to energy conservation measures.

Under Shapiro’s proposal, the city would use tax credits to reimburse 
homeowners for 50 percent of the cost to install energy-efficient windows 
and 100 percent of the cost of new insulation.  The credits would be limited 
to $8,000 in tax relief over eight years.

At $1,000 per year, that’s more than most seniors will get from the city’s 
existing tax program, Shapiro said.  That program, which Shapiro would keep 
in place, gives graduated tax credits to seniors—up to $1,000 for singles 
and $1,250 for couples—who fall under certain income limits.

The Board of Representatives is scheduled to vote tomorrow on a proposal by 
Mayor Dannel Malloy to raise the income limits from $50,000 to $65,000 for 
singles and from $60,000 to $80,000 for couples.

The Board of Finance last week recommended approving the increased limits.  
Republican members did not introduce a proposal from Republican mayoral 
nominee Christopher Munger to raise the income limits to $75,000 for singles 
and $90,000 for couples.  In a party-line vote, the board rejected a 
proposal from Republican members to cap annual tax increases for seniors at 
2 percent.

Shapiro said he would not limit the conservation tax credits to seniors.  
Anyone who met the income limits and other restrictions under the existing 
program would qualify.

“I think the seniors have a hard time, but there are many other people who 
have problems who are disabled, who don’t have enough income, who can’t work 
or are not willing to work,” he said.  “And the taxes are only one part of 
the problem.  We’re facing tremendous fuel costs.  Fuel costs have risen 50 
percent in the last year and 100 percent in the last two years.”

The investment in conservation likely would save more money over the life of 
the home than the tax savings, he said.

“If somebody invests in their insulation, they can often cut their energy 
consumption by 40 percent,” said Shapiro, an architect who specializes in 
energy-efficient home design.  “In most cases, that can be more than the 
maximum of $1,250 that would be allowed under the (existing) tax program.”

The lower reimbursement for windows takes into account the possibility that 
homeowners would buy windows based on aesthetics and not just energy 
efficiency, he said.

His tax credit program would save other taxpayers, too, Shapiro said, by 
putting the brakes on air pollution, traffic and road wear from fuel trucks.

Whether taxpayers on limited incomes could afford the improvements is not 
clear.

Homeowners could pay for the improvements with low-interest loans for home 
improvement, Shapiro said.  He would use the tax credits to guarantee those 
loans, up to the $8,000 limit per person, and even link the tax credits 
directly to loan repayment, he said.

“The money from the tax department would go to pay the loan back,” he said.

He proposed capping the total amount of credits at $5 million.  The total 
cap on the existing senior tax relief program is $1.5 million.  If cost were 
still an issue, or demand were high enough, the credits could be funded with 
a higher tax rate on cars, he said.  Stamford already has one of the highest 
car tax rates in the area.

“That’s the purpose of government and taxes—to help the people who can’t 
help themselves,” Shapiro said.

His proposal has some things in common with tax credits in the recently 
passed federal energy bill.  The bill includes federal income tax credits 
from $50 to $500 on energy saving measures, from appliances  to windows and 
insulation.  It includes larger tax credits and income deductions for hybrid 
vehicles, solar power and solar hot water heaters.  Some of the federal 
credits cover costs remaining after state and local tax credits.