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At the pump, gas prices are “low” now. Remember last May when Chrysler was offering a $2.99 gas guarantee while the price per gallon continued to climb towards $4.00? It seemed like a good deal at the time, but I was quite skeptical, thinking prices would eventually return and that Chrysler must have known that in order to offer this “deal.” Other people considered the era of gas prices lower than $2.00 to be over. Today in New Jersey, gas prices are closer to $1.50 per gallon.
Some experts believe that right now, before consumers begin taking advantage of lower gas prices and buying large SUVs and Hummers again, would be a perfect time to enact a national tax on oil, natural gas, or coal, far up the supply chain. It’s quite possible that this tax would be passed down the line to consumers in the form of higher prices, perhaps amounting $1 per gallon.
The tax would be an incentive for the industry to increase the pace of research and development in alternative, cleaner sources of industry.
ExxonMobil is looking forward to this tax if the other choice is to cap greenhouse gas emissions. I find it unlikely that Congress would pass this energy tax, but anything can happen.
When gas prices were higher last year, it corresponded with a change in driving and consumer behavior across the country. The threat of a recession and the general economic sentiment might have contributed as well. Will keeping the gas price high prevent a return to large cars and trucks even when the economy improves?
Rather than firing up the central air conditioning, you can keep it off or lower its power in the heat of the summer by exploring some of these low-cost alternatives.
1. Use fans. While fans don’t change the temperature of the air, they increase air movement, which will make you feel cooler by a few degrees. Look for fans with large blades. In general, the large blades will move more air with less power and less noise.
2. Cool the air naturally. If you hang damp sheets in front of your window, air coming into your house or apartment will lower the temperature of the air as it enters.
3. Wear light colors. Black fabric absorbs heat while light-colored fabric reflects. Light-weight fabric allows your skin to breathe. Fashion aside, proper summer clothing can help keep you cool.
4. Install shades and blinds. By keeping your rooms shielded from the sun, you can avoid direct light and heat. Keep the blinds closed during the day and open the windows during the night. There are window coatings available that let in light while keeping out heat. Try searching Home Depot for heat and glare control window films.
5. Wear a cooling bandana. Here’s a stylish way to keep yourself cool. Cooling bandanas can be soaked in water and are worn around the neck. As the water evaporates your body remains cool. You can find cooling bandanas on Amazon.com.
6. Avoid chores. Forget about using the clothes dryer or the oven; these appliances emit heat, so your cooling system must work harder whenever you’re cooking or drying. While the weather is hot, eliminating strenuous chores will help protect your body from dehydration. Alcohol and caffeine should be avoided as well for the same reason.
7. Spray yourself with water. Never was a wet tee-shirt contest a better idea. Keep yourself wet with sprinklers outdoors or spritzers (water bottles with a spraying handle) indoors.
8. Leave the house. Take advantage of large businesses that must keep their air conditioners running to keep customers comfortable; take a trip to the mall. If you do stay in and run the air conditioner, however, keep the thermostat high and supplement the house cooling with fans.
Where I live, the temperature has been above 90 degrees lately, with the heat index over 100 this past weekend. I don’t have it quite as bad as those in Texas, for example, but heat makes everyone uncomfortable. As someone I knew used to say, you can only remove so many layers of clothing.
Beat the Heat Without Busting the Budget, Rodika Tollefson, LifeWire
If you perceived a painful sting each time you opened a wallet in a grocery store or at a gas station last year, it wasn’t just you. The Bureau of Labor Statistics has informed the public that the Consumer Price Index for 2007 is 4.1%, the highest inflation rate since 1990. The increase is due to higher costs of energy (up 17.4%) and food (up 4.9%). Without energy and food, the core inflation rate is 2.4%. [BLS: Consumer Price Index Summary]
Sure, I’m much more aware of my personal finances now, and made some very positive changes in 2007, but looking back, I realize I’ve also made some very-avoidable mistakes, for which I’m kicking myself.
My first mistake is also the most annoying to me, since I’ll be feeling the impact of this particular poor decision as I trudge through my tax filing in the next two months.
1. Failing to Utilize the Energy Tax Credit
A tax law change in 2005 meant to encourage energy-conscious home investments by consumers offered a ten percent tax credit for 2006 and 2007 purchases of energy-efficient exterior doors, windows, insulation systems, metal roofs, furnaces and water heaters.
The credit, up to $500 in total, could be split across the two years.
In 2006, I was thrilled to take a $140 tax credit for new windows I’d purchased for my home, but planned to use the remaining $360 credit for door and window purchases in 2007.
I knew I needed to buy several exterior doors, knew they’d be expensive, had all year to make the purchases, and yet I failed to do so. My rationale? I figured that if I kept haunting the returned special order bins at Home Depot and Lowe’s, I’d eventually find dirt-cheap doors, and the savings would justify the wait.
Now it’s the first day of 2008, I still have no doors for my home’s impending remodel, and I lost out on a $360 tax credit I badly needed to offset my 2007 income.
The only way to make up for this now is if I really do find an insane deal on the doors I need, and with a month left until I need them for the remodel, that’s not looking likely.
I have 4 more mistakes to share; stay tuned.
Treasury and IRS Provide Guidance for Energy Credits for Homeowners [IRS]
Rebates and Tax Credits for Windows, Doors, and Skylights [EnergyStar.gov]
Last night, my girlfriend and I, along with millions of other people, watched the “ball drop,” the traditional count down to the new year. I happened to catch Ryan Seacrest mention that the “ball” is all new this year, and those who manufactured the shining orb took a more eco-friendly approach. So I looked up the details.
The new “ball” measures six feet in diameter and is constructed with 9,576 colored and white LEDs as well as 672 crystals. The amount of energy consumed by the lighting is equivalent to the power used by 10 toasters.
I learned some interesting things while reading about the New Year’s ball. For instance, the original ball consisted of 100 25-watt incandescent light bulbs and first descended in 1907. The act of dropping a ball to signify the passage of time dates back to 1833 in England. This ball would drop at one o’clock every afternoon to aid ship captains in navigation.
Despite this year’s energy savings there is still something about the celebration in New York that screams, “excess!” From what I can only imagine is Dick Clark’s artificial life extension to mediocre lip-sync acts, and from the television program which contains more advertising than content, to the bright, inefficient lights advertising brightly in Times Square, it just seems like the massive celebration is just a little over the top.
However, there has to be something said for brining people together in joy, anticipation, and optimism.
New York Rings in the New Year in an Eco-Friendly Fashion [International Facility Management Association]
Famouse New Year’s Eve ball now eco-friendly [AP]
New Year’s Eve – About the Ball [Times Square Alliance]
Congress will likely pass a bill this week that will have a positive effect on global warming. The bill requires requires light bulb manufacturers to create products that consume 25% to 30% less energy than the typical incandescent bulbs on the market today by 2012 to 2014. The goal doesn’t end there; by 2020, light bulbs must be 70% more efficient. Compact fluorescent bulbs (CFLs) already meet this objective, but they cost four times comparable incandescent bulbs on average.
The good news is they last much, much longer. The difference in price is easily recovered due to the bulb’s long life. Additionally, replacing one incandescent bulb with a fluorescent will save an average consumer $5 on their electricity bill each year. With bulbs costing $4, there is no argument that a switch to compact fluorescent isn’t worth it.
I have compact fluorescent bulbs in most of the sockets in my apartment. I can’t say that I’m a fan of the color of light they produce. Also, many CFLs cannot be placed on dimmers. With improvements to the technology, I’m positive that better bulbs will continue to be made and prices will decline over time.
As my incandescents continue to die, I replace them with compact fluorescents. The small expense now will go a long way to saving money later. I’m helping the environment as well.
photo: Bludgeoner86
It’s lights out for traditional light bulbs [USA Today]
CNN Money is offering seven suggestions for reducing your tax, all possible before filing your 2007 taxes. The first suggestion is to “re-energize” your home.
You can reduce your tax bill by up to $500 if you install insulation, windows, doors or central air conditioning that meet certain energy conservation standards. You also can take a credit up to $2,000 if you install a solar-powered hot water system or solar photovoltaic panels, which convert sunlight into electricity.
While this tax credit sounds interesting, I don’t see it as an immediate financial advantage for the taxpayer. Yes, making these changes may increase the “value” of the house, but only if a buyer recognizes that down the road. You won’t get as much tax back as you would spend to make these changes. So you’ll owe the government less, but more money will leave your pocket. Here are the credits you can expect to receive:
* $50 for each advanced main air circulating fan
* $150 for each qualified natural gas, propane, or oil furnace or hot water boiler
* $300 for each item of qualified energy efficient property.
Even if you go on a spending spree, the maximum credit you’ll receive on your tax form is $500. From a financial standpoint, this is likely not worthwhile, but green energy will eventually be less harmful to the environment. I’d like to see better incentives.
7 Year-End Tax-Saving Moves [CNN Money]
Treasury and IRS Provide Guidance for energy Credits for Homeowners [IRS]
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