Tax Credits
First-Time Home Buyer Tax Credit |
“A 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 1, 2009. Follow the link below to see if you qualify”: http://www.federalhousingtaxcredit.com/2009/index.html |
|
Database of State Incentives for Renewables & Efficiency (DSIRE) |
“DSIRE is a comprehensive source of information on state, local, utility, and federal incentives and policies that promote renewable energy and energy efficiency. Established in 1995, DSIRE is an ongoing project of the NC Solar Center and the interstate Renewable Energy Council funded by the U.S. Department of Energy. Follow the link below to click on your state to see what incentives you qualify for”:
http://www.dsireusa.org/ |
|
TAX Incentives Assistance Project (TIAP)
www.energytaxincentives.org |
“Sponsored by a coalition of public interest nonprofit groups, government agencies, and other organizations in the energy efficiency field, 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 subsequently amended several times”.
|
Available with Structural Insulated Panels:
HISTORY:
In 2005, the United States Energy Policy Act was signed. This legislation gives financial incentives to residential contractors and commercial building owners that build energy efficient homes and buildings. By using energy efficient building materials such as structural insulated panels
(SIPs), builders and contractors can qualify for a $2000 tax credit
on residential homes or up to a $1.80 per square foot tax
deduction on commercial buildings.
PROVISIONS:
Homebuilders are eligible for a $2,000 tax credit for a new energy efficient home that 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 evelope 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.
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 emonstration 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.
TAX CREDIT VS TAX DEDUCTION:
Tax credits, as compared to tax deductions, directly reduce
the amount of income tax owed. Tax deductions reduce the
amount of income subject to tax.
HOW TO QUALIFY AND APPLY HOME TAX CREDIT:
To receive the $2000 tax credit for homes, the builder must follow the guidelines set out in IRS Notice 2006-27. To do so, the home must undergo an inspection from an energy rater certified
through the Residential Energy Services Network (RESNET). To find RESNET energy raters in your area visit the RESNET website.
The Internal Revenue Service has created IRS Form 8908 to guide
contractors through applying for the tax credit.
HOW TO QUALIFY AND APPLY FOR COMMERCIAL TAX DEDUCTION:
Owners of commercial buildings must follow the procedures listed
in IRS Notice 2006-52. 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.
PARTIAL DEDUCTIONS:
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. The separate building systems are:
1. Interior lighting system
2. Heating, cooling, ventilation, and hot water systems
3. Building envelope
For more information on partial deductions, consult IRS Notice 2006-52. |
