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Energy-Efficiency Tax Breaks Extended for Homes, Buildings
Through recently extended provisions in the Energy Policy Act of 2005, home builders, commercial builders and commercial building owners can lower their energy costs and their federal tax liability by constructing highly-efficient properties and making energy-saving improvements to existing buildings, according to the Tax Incentives Assistance Project (TIAP).
Federal tax incentives also are available to business purchasers of hybrid vehicles.
TIAP is sponsored by a coalition of public interest nonprofit groups, government agencies and other organizations in the energy efficiency field and is designed to give consumers and businesses information on federal income tax incentives for energy-efficient products and technologies.
Through 2008, owners or tenants can receive a federal tax deduction of up to $1.80 a square foot for cutting by at least half the annual heating, cooling, ventilation, water heating and interior lighting costs of new or renovated buildings that meet the national ASHRAE Standard 90.1-2001. (Only buildings covered by the scope of the ASHRAE standard are eligible.) For government properties, building designers can claim the tax deduction.
Lesser deductions, of $.60 per square foot, are available for less sweeping energy-efficiency measures — specifically for improvements to only one of three building systems — the building envelope, the lighting system or the heating and cooling system. To claim the deduction, the owner or tenant must reduce their total energy use by 16.66% (or one-third of the higher 50% goal). If the owner or tenant makes energy-efficiency improvements of 16.66% to two of the three systems, an $.80 per square foot tax deduction is available.
Also available through December 2008 are federal tax credits for builders of site-built or manufactured homes. A $2,000 credit is available for each qualifying home in the year it is sold.
Site-built homes must be certified to use at least 50% less energy than a comparable home that complies with the standards provided in the 2003 International Energy Conservation Code, including supplements, and uses a SEER 13 air conditioner. Builders of manufactured homes that are certified to save 30%, or that qualify for the Environmental Protection Agency’s ENERGY STAR Homes program, can receive a tax credit of $1,000 per home.
Qualifying homes feature a range of innovative design and construction methods that increase energy efficiency, such as better-insulated foundations, walls and ceilings; high-efficiency windows; well-sealed framing and air ducts; and high-efficiency heating and cooling systems.
In addition, through December 31, 2009, buyers and lessees of all weights of hybrid vehicles — light-, medium- and heavy-duty — can receive federal tax credits based on the weight class of the vehicle, its fuel economy relative to a comparable conventional vehicle and the vehicle’s incremental cost. The vehicle must also meet a threshold value of “maximum available power,” a measure of the percentage of total vehicle power available from its rechargeable energy storage system.
For full details on the tax provisions, click here.
 ‘Green Building Products’ Available at BuilderBooks.com
“Green Building Products: The GreenSpec Guide to Residential Building Materials,” available through BuilderBooks.com, provides descriptions and manufacturer contact information for more than 1,400 environmentally preferable products and materials — from age-fiber panels to zero-VOC paints.
To view or purchase this publication online, click here, or call 800-223-2665.
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