Energy projects may qualify for stimulus

If you’re considering making investments in energy savings at home, you might be able to grab a little help from the federal government.

The economic stimulus package extends, increases and adds tax credits for some energy-saving projects – credits that, in combination with Avista rebates, can save homeowners a substantial amount of the cost of a new heating system or certain appliances, the utility says.

“In our area, heating costs make up from 40 to 60 percent of a home’s monthly energy bill during winter. By upgrading to a high-efficiency furnace, a customer could reduce the heating portion of their bill by an average of 10 to 30 percent depending on the efficiency of their current equipment,” Bruce Folsom, director of energy efficiency for Avista, said in a statement last week. “Taking other energy-savings steps like increasing insulation and switching to compact fluorescent light bulbs can add up to even more energy savings.”

Among the changes to the tax credits for energy efficiency in the stimulus bill, signed into law in February:

•Tax credits in place for 2009 have been extended to 2010.

•Tax credits have been raised to 30 percent of the cost of the project.

•The maximum credit has been tripled, to $1,500, for items such as new windows and doors, insulation, roofs, heating and air conditioning systems, water heaters and biomass stoves.

•Other improvements, such as geothermal heat pumps, solar water heaters and solar panels, have no maximum credits.

You can get more specific information at www.energystar.gov, and you should consult with a contractor or tax expert for the details on any particular project.

Avista, too, offers rebates and incentives on nearly all such projects. For more on the utility’s incentives, as well as energy-saving advice, see www.everylittlebit.com.

Kids and money

Trying to teach your kids about how to handle money? Here are some suggestions from a recent McClatchy story:

Start early. Explain where money comes from and where it goes: lights, heat, food. Explain what an ATM is.

See if your bank offers tours for kids – especially of the vault, which will grab a kid’s attention. It’s important that children realize their money gets mixed with other people’s and how the bank uses it.

Use a six-jar system. This suggestion comes from Stacey Sherman, head of Family Life by Design, which teaches families financial literacy. It works for kids and adults, Sherman says. Jar No. 1 is your financial freedom account, where you put money for CDs and stocks. No. 2 is for long-term savings and emergency funds. No. 3 is the education fund. No. 4 is your living expenses fund. No. 5 is your spend/play money, and No. 6 is for donations. Allocate 55 percent of your money to the living jar, 5 percent to donations and 10 percent each to the other four.

Be consistent, whether you give an allowance or pay for chores. Don’t give in to whining for more money. Be clear about what a child is expected to pay for and what you’ll cover. Insist on a percent for savings, but don’t dictate every penny.

Set up a savings account. Some banks offer no-fee accounts for young children.