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Free Software Helps Builders Use Energy Tax Credits
By Jay Murdoch, Owens Corning
Builders across the country are confused by the 2005 Energy Policy Act. While they know it offers some tax incentives, they’re not sure how to navigate its complicated guidelines. Lack of awareness and confusion is common with any new law or regulation, but once they are educated, builders can benefit from opportunities that the law’s rules provide.
The new energy bill, passed last August, offers builders the opportunity to receive a $2,000 federal tax credit for every new home they construct that consumes 50% less energy than a home meeting the requirements of the 2004 International Energy Conservation Code. It also offers tax breaks to their customers.
Soon after it was passed, many companies such as Owens Corning began asking builders what the act meant to them. We learned that builders were focused on the impact of the law’s provisions on simple pay-backs and monthly cash-flow savings. Builders said that the projected monthly utility savings for a home buyer could offset or pay entirely for the additional costs of the energy upgrades, and by focusing on that potential concluded that the credits offered substantial opportunities to increase profits.
Keeping It Simple
 Once builders determined that the law offered legitimate savings, they began asking for a tool to help them build to its compliance standards. They asked for an integrated costing function with the ability to override default costs for materials and utility rates; the ability to run “what-if” scenarios and look at multiple compliance paths; a way to illustrate simple pay-back and monthly cash-flow results; and a guarantee that the tool would be recognized by the Department of Energy and the Internal Revenue Service.
At Owens Corning, our solution was the Builder Energy Solutions Calculator, a free software tool that builders can use to leverage the law’s tax credits to benefit their business.
Making It Green
Builders nationwide are embracing the green and sustainable building incentives outlined in the energy bill because they know it will not only improve profit margins, but also improve their communities.
Builders recognize that the homes they create have an impact on the environment and their community, and that the energy law and its compliance tools can help them build highly energy-efficient homes that will reduce the environmental and financial burden on today’s and future generations.
We believe the energy bill can help builders deliver solutions that today’s home buyer is demanding; transform how homes will be built into the future; and enhance the lives of home owners by delivering highly energy-efficient homes.
Decoding the new law is one way of doing that. Compliance tools like the Builder Energy Solutions Calculator will help builders get the most out of the Energy Policy Act of 2005 while improving homes and communities nationwide.
For more information about the calculator, click here.
Jay Murdoch is technical marketing manager for Owens Corning. Headquartered in Toledo, Ohio, Owens Corning is a member of the National Council of the Housing Industry — The Supplier 100 of NAHB.
This feature is solely for educational and informational purposes. Nothing on this page should be construed as policy, an endorsement, warranty or guaranty by the National Association of Home Builders of the featured product or the product manufacturer. The National Association of Home Builders expressly disclaims any responsibility for any damages arising from the use, application or reliance on any information contained on this page.
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