Cash for Clunkers EXPLAINED, a Dozen ARRA programs outlined. Money Giveaway, More than you can count

Government opens gold mine to public!

More money than you could count in a lifetime.

#1 Clunkers Rebate Explained

This program has been so popular that the FIRST BILLION DOLLARS that was allocated to it has already been taken up by the 250,00 owners who decided to get their gas guzzling, exhaust spewing older vehicles off the road. Congress has already approved another US$ 2 BILLION more for the program. That would cover another 500,000 vehicles,but all of which goes to show that the Obama promise/goal of having 1,000,000 plug-in hybrids on the road by 2015 is far too modest. With the right program, they could do it in a single quarter of the year 2011. All of that opinion aside, here's how the Cash For Clunkers program works in a brief outline. (But remember some dealers still can't explain all these rules, yet, and there are more details included in the formal regulations.)

Government program gives DEALERS $4500

What good does that do me? The dealer has to give you any "sales/promo" discounts and THEN apply the $4500 toward the price of your car or truck.

Your new car must qualify:

Special rules for trucks, but must be NEW car, MSRP not more than $45,000, and MPG better than 18 (and at least 2 MPG better than your old car get the full rebate).

Your old car must qualify:

a) no older than 1982,

b) passenger cars and light trucks only (no tractors, combine harvesters or motorhomes)

c) original EPA estimate of 18 MPG of Worse (i.e.higher number lower miles per gallon)

(sorry if they lied to you about the gas mileage, just because it never GOT more than 18 MPG doesn't make it a qualifying vehicle)

d) must be in running condition (you can't drag it in using a mule team)

e) dealer must NOT resell it, must certify that it has been scrapped.

f) must be both registered and insured in your name for a full year prior to trade-in

The dealer has to submit deal details to the NHTSA, they send the dealer the money to be applied to your purchase.

Z) Also be sure you CHECK THE listing of city, and state government programs in your area by going to DSIREUSA.ORG WEBSITEfor further possible opportunities to get government help to Stimulate Your Personal Economy

ZZ) Oh, and if you would like to get the whole set of these tip relating to the America Reinvestment and Recovery Act of 2009, be sure you visit this site for the rest of the set. It's free with no obligations.

#2 Home Sweet Home

Tax credits are BETTER than tax deductions.

Income of $1000, federal tax due of $100, your net income is $900

If you qualify for a Tax deduction of $100, Government says your Taxable Income was $900, Fed. tax due is $90

Your net "take home" is just $810, (plus the $100 you spent to get the deduction) for total net income of $910

If you qualify for $100 tax credit, it applies directly, dollar-for-dollar to the tax you owe, so if you earn $1000 and have a tax credit of $100

because you got a "credit" of 50% of the $200 you spent on solar panels, total net income to you is $1000 (including the $200 of solar panels

which continue to reduce your electric bills for years to come).

a) "Little Green" - if you install any of the energy efficiency improvements after January 1, 2009 and before January 1, 2010

You get a tax credit of up to $1500 (based on 30% of cost of that improvement to your existing home). What energy efficiency improvements?

Specific rules apply, and you can find the details at Energystar.gov but this program includes:

1) energy-efficient windows,

2) insulation,

3) doors,

4) roofs, and,

5) heating and cooling equipment (furnaces, air conditioners, coolers, etc.)

Be sure to check the Energystar.gov site before you purchase or install to be sure your home improvement qualifies.

b) "Big Green" - This applies to energy generating equipment for your home. This is an exact quote from the Dept. of Energy website.

"Residential Renewable Energy Tax Credits

Consumers who install solar energy systems (including solar water heating and solar electric systems), small wind [powered electric generating] systems, geothermal heat pumps, and residential fuel cell and microturbine systems can receive a 30% tax credit for systems placed in service before December 31, 2016; the previous tax credit cap no longer applies."

If you install equipment that makes compatible electricity, in some places you can sell that electricity to your utility company and even make a profit by producing more than you use.

In almost all places you can at least sell extra electricity to your electric utility to reduce your electric bill to zero.

Z) Also be sure you CHECK THE listing of city, and state government programs in your area by going to DSIREUSA.ORG WEBSITE for further possible opportunities to get government help to Stimulate Your Personal Economy

ZZ) Oh, and if you would like to get the whole set of these tip relating to the America Reinvestment and Recovery Act of 2009, be sure you visit this site for the rest of the set. It's free with no obligations.

#3 Hybrids and Electric Cars and Trucks

a) Hybrid Gas-Electric and Alternative Fuel Vehicles

1) This tax credit will be phased out for each manufacturer once that company has sold 60,000 eligible vehicles. At that point, the tax credit for each company´s vehicles will be gradually reduced over the course fifteen months. See the IRS's Summary of the Credit for Qualified Hybrid Vehicles for information on the status of specific vehicle eligibility.

2) Alternative-fuel vehicles, diesel vehicles with advanced lean-burn technologies, and fuel-cell vehicles are also eligible for tax credits. See the IRS summary of credits available for Alternative Motor Vehicles.

3) Individuals and businesses who buy or lease a new hybrid gas-electric car or truck are eligible for an income tax credit for vehicles "placed in service" starting January 1, 2006, and purchased on or before December 31, 2010. The amount of the credit depends on the fuel economy, the weight of the vehicle, and whether the tax credit has been or is being phased out. Hybrid vehicles that use less gasoline than the average vehicle of similar weight and that meet an emissions standard qualify for the credit.

b) Plug-In Electric Vehicles

1) Plug-in electric vehicles also qualify for a tax credit starting January 1, 2010. The credit for passenger vehicles and light trucks ranges from $2,500 to $7,500, depending on batter capacity. The first 200,000 vehicles sold by each manufacturer are eligible for the full tax credit; the credit will then phase out over a year. By the way, another page on the DOE website says, after 250,000 of the electric drive vehicles are sold.

c) Plug-In Hybrid Conversion Kits

1) Hybrid vehicle owners who purchase a qualified plug-in hybrid conversion kit are eligible for a 10% credit, capped at $4,000, through 2011.

Final values of these tax credits will be determined by the Department of Revenue's Interal Revenue Service, check with the IRS or your accountant.

Z) Also be sure you CHECK THE listing of city, and state government programs in your area by going to DSIREUSA.ORG WEBSITE for further possible opportunities to get government help to Stimulate Your Personal Economy

ZZ) Oh, and if you would like to get the whole set of these tip relating to the America Reinvestment and Recovery Act of 2009, be sure you visit this site for the rest of the set. It's free with no obligations.

#4 Businesses Energy Efficiency and Incentives for Others

a) There are dozens, almost hundreds of ways the government will give money, deductions or tax credits to individuals, but remember there are some overriding goals that all of this is intended to serve.

These goals, in the energy area, are intended to meet the crisis of climate change, and energy security, but also the objectives of improved education available for everyone, and properly insured healthcare for everyone.

Ultimately all of this stimulates the economy by getting money flowing into business, and between businesses. Some of that is going to go directly to those businesses which, in effect, puts them on the first rung of a ladder of economic improvement.

Creating business climate improvements also gets money flowing in the other direction which, by creating jobs, puts money in the pockets of individuals.

1) Fuel Producers: Lots of credits for clean fuel creation and use. Fuel producers are eligible for up to $1.10 per gallon in credits, with fewer restrictions to allow for a broader range of clean fuels to qualify. Similarly utility companies are eligible to apply for benefits from other programs that produce clean electricity from solar, geothermal, wind and other environmentally friendly technologies.

2) Utilities & Governments: A new bond authorization of $800 million of renewable energy bonds is allocated into thirds among qualifying entities:

i) projects of state, local, tribal governments

ii) projects of public power providers

iii) electric cooperatives

for bonds issued before Dec. 31, 2009. Clean Renewable Energy Bonds (CREBs) for facilities that generate electricity from: wind, closed-loop biomass, open-loop biomass, geothermal, small irrigation qualified hydropower, landfill gas, marine renewables, or trash combustion (by which I hope they really mean "trash gasification", which is a much cleaner process than just "burning" trash).

3) Commercial Buildings & Businesses: Energy-efficient systems installed in commercial buildings can qualify if they achieve energy efficiency savings of greater than 50%.

The energy savings must be accomplished through energy and power cost reductions for the building´s heating, cooling, ventilation, hot water, and interior lighting systems.

The amount deductible is up to $1.80 per square foot of building floor area for buildings achieving a 50% energy savings target.

This one is available through December 31, 2013

4) Home Builders: New energy efficient houses qualify their builder for incentives too. The credit equals $1,000 for homes meeting a 30% efficiency standard, and $2,000 for homes meeting a 50% standard.

The homes must be built before Dec. 31, 2009.

5) Specials: Insulation for trucks, or installation of truck idling reduction devices (typically auxillary power units so the diesel engine doesn't have to idle at truck stops), as well as credits to makers of energy efficient appilances like washers, dishwashers, and refrigerators.

b) If you are a small business owner, check with your accountant, or if you are involved in any of the specific businesses mentioned here, be sure the responsible person is aware of this new opportunities to save money and energy.

Z) Also be sure you CHECK THE listing of city, and state government programs in your area by going to DSIREUSA.ORG WEBSITE for further possible opportunities to get government help to Stimulate Your Personal Economy

ZZ) Oh, and if you would like to get the whole set of these tip relating to the America Reinvestment and Recovery Act of 2009, be sure you visit this site for the rest of the set. It's free with no obligations.

#5 Facts of Life: Fuels and Fools

a) Facts of Life: Coal is a huge and important industry in the US, and it has a lot of influence. Coal is also a major contributor (some say THE largest contributor) of carbon dioxide gases to the atmosphere from its use in coal-fired electric generating plants.

Coal isn't going to just "go away" any time soon, and the coal industry is trying in a variety of ways to "clean up its act", especially by creating liquid fuels from coal. The ARRA acknowledges this, but is also pretty tough on those efforts with strict standards to be met.

1) The ARRA bill extends the alternative fuel excise tax credit by amending Section 6426(d) of the Emergency Economic Stabilization Act of 2008 through December 31, 2009 for all fuels except hydrogen. Beginning in October 2009, qualified fuel derived from coal through the Fischer-Tropsch process must be produced at a facility that separates and sequesters at least 50% of its CO2 emissions. This sequestration requirement increases to 75% on December 31, 2009. The bill adds biomass gas versions of liquefied petroleum gas, liquefied or compressed natural gas, and aviation fuels as qualifying alternative fuels.

b) Cellulosic Ethanol has not been coming along as fast as some people hoped. To encourage building more cellulosic ethanol production capacity they extended a very attractive business incentive to cellulosic ethanol and other cellulosic fuel producers.

1) The Emergency Economic Stabilization Act of 2008 was also amended (section 168) to allow taxpayers immediately write off 50% of the cost of facilities that produce cellulosic biofuels ethanol if such facilities are placed in service before January 1, 2013. The bill makes this tax benefit available for the production of other cellulosic biofuels in addition to cellulosic ethanol.

c) Biobutanol is a fuel you may have never heard of but it could be an important one in the not-too-distant future. Ethanol is part of a "family" of compounds as is Methanol (commonly called "wood alcohol"). Both of these have "fuel" forms, ethane and methane, respectively both of which come in a gaseous state. Butane fuel under pressure is a liquid as is compress natural gas ("natural gas" is also called methane). But when the pressure is released, it is what burns in those disposable lighters.

Just as methane has an alcohol form, butane gas' alcohol form is butanol. When you make if from cellulosic substances (trees, grasses, weeds, seaweeds, etc.) it is called "biobutanol". Dow Chemical company is partnering with BP (that used to be called "British Petroleum") and the British Sugar Company to develop methods of cheaply producing biobutanol to fuel cars and trucks. It has more energy in it that does methanol or ethanol, so it is much closer to gasoline in power and can be used without modifying the vehicles or any of the delivery equipment from what is now used for gasoline. That makes it a STRONG candidate to replace some or all of the ethanol in gasoline blends in the future, or perhapts even gasoline itself.

The tax break for building cellulosic ethanol would apply to biobutanol facilities as well, and existing ethanol making operations can fairly easily be converted to making biobutanol instead (cheaper than building from scratch, too). All of this is good news for farmers, because corn growers can now continue to sell their corn for food, but they can also sell the stalks and leaves to be made into cellulosic fuels, either ethanol or butanol.

d) Biodiesel has some very attractive properties as a fuel. Biodiesel is biodegradable. Biodiesel also has some problems. To illustrate the problem allow me to tell a story. In this story a man comes to you and says, "I can make a car that runs 500 miles on a liter of ethanol." "Wow, that's great, tell me about it," you answer. "Well you start with 7 tons of diamonds, and ..." The problem, of course, is that it doesn't likely matter what comes after he says, "and" because even if it got 200,000 miles on a gallon of ethanol, there is not way anyone can afford to buy a car made from 7 tons of diamonds.

Biodiesel, though it is simple and relatively inexpensive to make, has a similar problem. It is made from plant oils, but virtually every form of vegetable oil is more valuable already than the diesel fuel you might be able to make from it. Soy oil and palm oil used to be cheap enough, but as the demand went higher, so did the price, and now it is all but impossible to make biodiesel economically. Palm oil has been an ingredient in soap for hundreds of years (do you remember the "Palmolive" brand, made with a blend of palm and olive oils?) Canola can be cheap, but this NO cholesterol oil is more valuable as a cooking oil.

Promising candidates to revive the biodiesel industry are oil from a bush called jatropha curcas, a plant that cannot be eaten, and whose only use is as hedges that act as fences that cattle can't eat. The rather poisonous oil from its seeds can make biodiesel and other forms of diesel fuel, and candles. Now, the next great hope is that oils from algae, both the kind that grow in swamps and stagnant ponds (also known as "slime") and the kind of algae that form the basis of the whole food chain in the oceans. The government is offering makers of biodiesel (and other forms of diesel from biomass sources) a tax credit of US$1.00 per gallon to help the industry get started. Even with that subsidy many biodiesel makers are closing their doors because they cannot make a profit at this time, and European Union representatives are protesting unfair trade practices and trying to ban imports of American biodiesel because of this subsidy.

e) CNG: those letters stand for "Compressed Natural Gas", and since natural gas is actually mostly "methane" which is a greenhouse gas 30 times more harmful to the environment than carbon dioxide, burning is when it comes seeping out of the rot in a landfill seems like a good idea. And it is. But most "natural gas" is part of what comes out of very deep wells drilled into the earth (usually seeking to find petroleum, though some wells are drilled specifically to tap the ancient gases trapped there). Methane/CNG burns VERY cleanly compare with most current vehicle fuels (although when it comes out of the ground it has to have heavy concentrations of sulfur removed before it can be used, and the sulfur piles up like a bright yellow horizontal version of the Sears tower, only larger). Legendary oil tycoon and investor, T. Boone Pickens, has developed a "plan" to use CNG for trucks and combined with that charge he proposes to produce 20% of the electric power the country needs from wind power turbines. He is correct that this will be a lot cleaner than even the current very low sulfur forms of diesel fuel in trucks and the coal that burns in about half of the electric generating facilities in the US, spewing into the air almost 50% of the total carbon dioxide produced in this country as they make the electricity we need. The problem with Boone's plan is that like the coal he wants to replace in power plants and like the petroleum based diesel he wants to replace in heavy trucks, the carbon in his CNG is ancient "fossil source" carbon the same as petroleum. It is exactly this kind of carbon that is not being re-absorbed by the carbon cycle of live plants and animals so that these fossil carbon atoms contribute to increasing carbon dioxide in the atmosphere. Carbon dioxide (or CO²) is the gas which is blamed for much of the "climate change crisis". Please pardon another analogy, but it is rather like Boone saying, "No, I didn't quit beating my dog, yet. But now I only beat him on Tuesdays and Thursdays." It is an improvement, but what Boone is selling is NO SOLUTION !

Z) Also be sure you CHECK THE listing of city, and state government programs in your area by going to DSIREUSA.ORG WEBSITEfor further possible opportunities to get government help to Stimulate Your Personal Economy

ZZ) Oh, and if you would like to get the whole set of these tip relating to the America Reinvestment and Recovery Act of 2009, be sure you visit this site for the rest of the set. It's free with no obligations.

IF you are reading this in the first week of August 2009, you may have to wait for the video series page to open. I plan to have it ready by August 11th at the latest, so you might want to bookmark http://daochienergy.com/govt/DOE/index.htm .

Oh, yes, the place to find the videos MAY be ready before that date. So check it out today (especially if you are reading this after Aug. 2009, you definitely want to check it right away). (I just learned that some of my columns from from a couple of years ago are still collecting about 500 hits a month.)

This has been a VERY long column today because all of the above explanation was originally written as scripts/outlines for the videos themselves, so I'm going to skip my usual entertainment segment this week. However ...

My "happy ending" this week is that I just got an email from Twitter that tells me that Michigan's Governor Jennifer Granholm is now following ME on Twitter.

Love and warm wishes,

Sincerely,

Stafford "Doc" Williamson

http://daochienergy.com