Build with SIPs, Recieve Tax Credits

As more states continue to make laws mandating energy effiency, focus is being directed toward the largest energy consumption group in the U.S. ‑ residential and commercial buildings. No doubt construction and renovation of buildings will continue to occur, but to reduce the impact on the environment, the building design industry have established a goal of “zero net energy” buildings by the year 2030. States are quickly falling in line with this goal and are helping homeowners and builders contribute to energy efficiency construction by providing tax credits.

From room additions to entire school constructions, Structural Insulated Panels (SIPs) are the best choice for energy efficient construction projects.That's why buying and building with SIPs can help you qualify for many tax rebates and incentives, Energy Efficient Mortgages for homeowners and environmental points towards certifications.

Learn how you can start building green now!

FEDERAL TAX REBATES & INCENTIVES:

WHAT DO I QUALIFY FOR AS A FIRST TIME HOMEOWNER?

The 'First‑Time Home Buyer Tax Credit' has been extended through December 31, 2010. This tax credit of up to $8,000 is available for qualified first‑time home buyers purchasing a principal residence on or after January 1, 2009 and before December 31, 2010.

WHERE CAN I FIND MORE INFORMATION ON CREDITS AND INCENTIVES?

1). Database of State Incentives for Renewable's & Efficiency (DSIRE) is a comprehensive source of information on state, local, utility, and federal incentives and policies that promote renewable energy and energy efficiency. Visit the DSIRE website and click on your state for more local inventive information. 2). Tax Incentives Assistance Project (TIAP) is designed to give consumers and businesses information they need to make use of the federal income tax incentives for energy efficient products and technologies passed by Congress as part of the Energy Policy Act of 2005 and amended several times.

WHAT DO I QUALIFY FOR AS A HOMEBULIDER?

Homebuilders are eligible for a $2000 tax credit for a new energy efficient home achieves fifty percent energy savings for heating and cooling over the 2003 International Energy Conservation Code (IECC) plus 2004 supplements. At least one fifth of the energy savings must come from building envelope improvement, achieved through higher levels of insulation and air sealing. A SIP building envelope delivers high R‑value insulation while reducing air leakage, making SIPs an ideal option for meeting this requirement.

WHAT DO I QUALIFY FOR AS A COMMERCIAL BUILDING OWNER?

A tax deduction of up to $1.80 per square foot is available to owners (or designers, in the case of government-owned buildings) of new or existing commercial buildings. To qualify, owners must demonstrate that the building was constructed or reconstructed to save at least 50% of the heating, cooling, water heating, and interior lighting energy cost that meet ASHRAE Standard 90.1‑2001.

HOW DO I QUALIFY & APPLY FOR A HOME TAX CREDIT?

To receive the $2000 tax credit for homes, the builder must follow the guidelines set out in IRS Notice 2007‑27. To do so, the home applying home must undergo an inspection from an energy rater certified through the Residential Energy Services Network (RESNET).

HOW DO I QUALIFY & APPLY FOR A COMMERCIAL TAX DEDUCTION?

Owners of commercial buildings must follow the procedures listed in IRS Notice 20006‑52. This notification provides guidance for full and partial deductions on new commercial construction and renovation. Since the financial incentive is a tax deduction, the Internal Revenue Service will continue to use standard forms to apply it to your taxes each year. Please consult a tax professional to learn how you can maximize your deduction.

CAN I RECIEVE A PARTIAL TAX DEDUCTION?

Yes...in the case of a building that does not meet the whole building requirement of a 50 percent energy savings, a partial deduction is allowed for each separate building system that is certified by a qualified professional as meeting or exceeding the applicable system savings targets of the $1.80 per square foot commercial tax credits. The applicable system savings targets are those that would result in a total annual energy savings of fifty percent for the whole building, if each of the separate systems met the system target; note that the maximum allowable deduction is $0.60 per square foot.

Learn how you can start building green now!