History

In 2005, The United States Energy Policy Act was signed into motion by President George W. Bush. This legislation allows for financial incentives for those building energy efficient structures. By using SIPs from Foam Laminates of Vermont, builders and contractors can qualify for a $2000 tax credit on a residential home or up to $1.80 per square foot tax deduction on a commercial building.

Eligibility

Residential contractors are eligible for a $2000 tax credit provided the new energy efficient home achieves 50% energy savings as dictated in the International Energy Conservation Code (IECC). Accordingly, at least one fifth of the energy savings must occur from air tightness and through R-value rating on insulation. SIPs are an ideal candidate for these gauges because of their superior thermal performance.

Builders can qualify for a $1.80 per square tax credit if the new or existing commercial buildings demonstrate at least 50% energy efficiency in the areas of heating, cooling, water heating, and interior energy cost as mandated by ASHRAE Standard 90.1-2001. Partial tax credits are also available to builders meeting several but not all of the criteria.

Where to get more Information

In order to qualify for the $2000 residential tax credit, builders must follow the guidelines dictated on IRS Notice 2006-27.

The Internal Revenue Service has created IRS Form 8908to assist builders with the tax credit application process.

Contractors for commercial buildings must adhere to procedures listed in IRS Notice 2006-52 in order to qualify for $1.60 per square foot tax credits.