Take Advantage of the Extended Energy Tax Credits

cit5glamourimagesmallAs you know, at the end of 2012 our Nation averted falling off what was referred to as the “fiscal cliff” by passing last minute budget legislation.  Homeowners and homebuilders became the winners with that vote because one of the provisions was to extend the Energy Tax Credit which was designed to help them upgrade the efficiency of the building envelop and reduce their energy usage.

There were two key components of that action. Congress extended a tax credit for energy efficient retrofits through Dec. 31, 2013 and retroactively to Jan. 1, 2012. The credit allows homeowners to claim 10 percent of the cost of qualified energy-efficient building materials, such as insulation, up to $500. They also revived a business tax credit of up to $2,000.00 for builders that construct or significantly renovate “dwelling units” (e.g. apartments, condos or single-family homes) that meet certain energy efficiency standards.

I strongly recommend that to make the best decisions for improving the energy efficiency of an existing home that you conduct a home energy audit. This is an important first step in identifying where updates are most needed and how to get the greatest return from a renovation budget. ResNet is a great resource that helps connect homeowners with trained auditors in their community. For more information, visit www.resnet.us.

That being said, it is fairly easy to identify one of the greatest sources of energy loss even if you are not handy with energy modeling programs – the attic. Take a look up there. If the tops of the ceiling  joists are visible then you will definitely need to add more insulation to reach the current recommended R-value. This is typical of homes built more than 30 years ago.

ainsulatticblow1webdsmallAccording to the U.S. Department of Energy, the average homeowner can save as much as 30 percent on energy bills related to comfort simply by having the right amount of insulation throughout the home. For attics, applying a premium fiberglass blowing insulation is the best solution for adding thermal performance in an attic and in keeping a home warmer in the winter and cooler during the summer (without concern for compressing what insulation already exists  – a real issue with some other types of loose-fill insulations available). And the best part: it is easy to access and an inexpensive way to achieve great results year round.

There are tools available for homeowners that help recommend R-values for different areas of the home, provide estimates of potential savings, and identifies incentives for completing insulation projects from this federal tax credit down to local utility programs.

The most important thing is that you act now and don’t miss the opportunity to take advantage of the Tax Credits while you can.  This might really be your last chance for a bite of the apple. The reality is older homes will need to be upgraded to remain competitive is the marketplace as newer construction comes online.  It is only a matter of time before energy efficiency labels will be placed on buildings.  Don’t let your single most valuable investment fall behind!

NAHB International Builders’ Show – Where New Products and Learning Collide

CertainTeed booth at IBS 2013

CertainTeed booth at IBS 2013

I am in Las Vegas for the National Association of Home Builders International Builders’ Show 2013.  I truly enjoy this show because it is a great opportunity to ‘kick the tires’ on products and learn about best practices taking places in the build community. 

With the new 2012 Building Codes that are starting to be adopted by states, it is critical that build professionals know the changes to the code requirements where they are building. It is also important to hear about best practices for achieving airtight assemblies and the best solutions for achieving maximum energy efficiency in the building envelope.

For IBS 2013, CertainTeed is focused on building knowledge. To assist with this, CertainTeed is incorporating in its booth (C2126) a Builder Resource Center making available building science and technical experts to share best practices but also to answer questions from show participants. If you come to our Resource Center you will be eligible to win a full day consultation by a building scientist on your construction site. 

At the booth, we will also have technical experts hosting “Ask the Expert” interactive sessions centered on building science, roofing, insulation, siding, gypsum and foundations. With the extension of the Energy Tax Credit as part of the fiscal cliff negotiations, contractors and developers who construct or renovate “dwelling units” (apartments, condos or single-family homes) that meet certain energy efficiency standards have access to a tax credit of up to $2000.

If you are attending IBS, make sure to stop by booth C2126 and pick our brains. I guarantee you will have a great learning experience as well as a fun time.

Cut Energy Bills at Home Act

Lucas Hamilton

Lucas Hamilton is Manager, Building Science Applications for CertainTeed Corporation

The mobilization of homeowners to make energy efficient updates continues to be a challenge in the drive to reduce energy consumption.

A newly proposed bill to provide tax incentives for home performance upgrades has been introduced by U.S. Senators Olympia Snowe (R-Maine), Jeff Bingaman (D-New Mexico) an Dianne Feinstein (D-California) entitled Cut Energy Bills at Home Act.  

This new tax credit is based on the annual predicted energy cost savings from improvements to heating, cooling, hot water, and permanent lighting in a taxpayer’s primary residence. The value of the credit begins at $2,000 for a 20 percent reduction in the energy consumption of a residential home for heating, cooling, water heating and permanent lighting.  The credit increases by $500 for every additional 5 percentage point increase in energy savings, up to $5,000 and the credit is capped at 30 percent of the cost of the improvements which includes labor, diagnostics and modeling costs.  Improvements would have to be “designed, implemented, and installed” by a contractor accredited by the Building Performance Institute (BPI), Residential Energy Services Network (RESNET), or a similar program approved by the Treasure Department.

This requirement is a positive one for building professionals but also insures that the work done will provide the necessary end result to qualify the building for the credit. This bill does go a bit further in scope than the previous tax credit. If there is a move to label homes for energy efficiency in a similar way to the energy rating of appliances (as we have spoke of before), then this program will be an invaluable proving ground for the methods, financing, and human resources needed for the retrofitting of older buildings to bring them up to current codes. With a majority of our building inventory more than 30 years old (say 100 million buildings out loud), we need to focus on bringing these buildings up to current standards if we hope to reach our national energy goals as outlined in the Architecture 2030 Challenge.

This bill may not be perfect but it does provide stimulation to the building community and continues to encourage building owners to reduce energy consumption.

Do Your Part to Extend the IRS Section 25c Tax Credit for Home Energy Improvements

 

Lucas Hamilton

Lucas Hamilton is Manager, Building Science Applications for CertainTeed Corporation

Both homeowners and manufacturers have benefited from the Energy Tax credits offered from 2009 – 2011 for home improvements that improve energy efficiency. For example, adding insulation to attics and basements, replacing drafty doors and windows and replacing a roof with an ENERGY STAR rated roof.  At a time when homeowners have been tightening their belts, this credit helped to sustain the building industry through upgrading and remodeling in the current home inventory.

A large part of the building inventory in the U.S. is over 30 years old.  The building codes where not as stringent back then and what we are learning is that the building envelopes are not as tight as they should be.  Statistics from ENERGY STAR show that homes that have added insulation to attic spaces, basement ceilings, and walls have seen a reduction in their heating/cooling bills over time.

On December 31, 2011, the Energy Tax Credits will expire. Yet, the work to improve the efficiency of homes and buildings is far from over.

As member of the Insulation Contractors Association of America (ICAA) & Council of NAIMA, CertainTeed supports the extension of Energy Tax Credits – IRS Section 25c until 12/31/2013.

Please write your Senator and Congressional representative to:

  • Extend the expiration date to 12/31/2013.
  • Raise the tax credit cap to $1500 from $500.
  •  Include the cost of labor for building envelope components (like insulation) the tax credit calculation.

Please visit www.capwiz.com/insulate/home/  to see the issue and a model letter.  Click the Take Action button – the support letter is already there – fill in the sender information and hit send message.  It’s that easy!

 

 

Energy Awareness – A Little Effort Can Save You Money

Lucas Hamilton

Colder weather is on its way! Don’t wait to make sure your home is operating efficiently. The Federal Energy Tax Credit will expire at the end of the year.  If you have not taken advantage of the $1500 rebate you may want to do so before December 31, 2010.

The benefits of an energy-efficient home are endless but here are a few:

  • You can reduce monthly utility bills
  • Enjoy a more comfortable home by eliminating cold and hot spots
  • Reduce the home’s carbon footprint by using less carbon based energy sources.  This is increasingly important across many communities in the U.S.

Doing a little homework will increase your results. Conduct that energy audit.  Enlist the help of a professional or visit Energysavers.gov for a helpful check list.  But here are a few things to look for:

  • If you can see floor joists in the attic, you need to add more insulation
  • If you can see daylight around a door or window, there’s an air leak.
  • Run a damp hand along the edges of windows and doors.  If there is a draft, it will feel cool to your hand.
  • Look for dirty paint at the edges of your outlets on exterior walls- they may need sealing.
  • Look for dirty carpet along the base boards of your exterior walls- you may need to seal the drywall to your sub-floor.

Seal leaks, caulk or weather-strip around fireplaces, electrical outlets and door and window frames.

Insulation is the most important addition to a home for improving comfort and savings. Homeowners have options in the type of insulation that would be best in solving the problem:  fiberglass batt insulation, blown-in insulation or spray foam insulation.  The key areas to focus on are:

  • Unfinished basements which can contribute to one-third of a home’s heat loss
  • The attic: especially if the home is more than 30 years old. It is likely it is substantially below current code recommendations for energy-efficiency.
  • Add insulation to exterior walls.  Consult a contractor to drill small holes in the stud cavity and add blown-in insulation.
  • Use insulation backed siding when re-siding your home.

Rob Brockman, marketing manager for CertainTeed Insulation was a guest on Talk Philly sharing tips for Energy Awareness month and making your home more energy-efficient.  You can view the segment here.

Lucas Hamilton is Manager, Building Science Applications for CertainTeed Corporation

Energy Awareness: A Life Long Pursuit

yhtp_cm_eam09_lgThe U.S Department of Energy has declared October as Energy Awareness Month to call attention to the need for all of us to adopt new habits to help lower our carbon footprint. The theme for 2009 is A Sustainable Energy Future: We’re Putting all the Pieces Together.

Energy awareness was first observed in the U.S. in 1981 as American Energy Week but was expanded to a month-long observance by the Department of Energy in 1986.  On September 13, 1991, President Bush officially proclaimed October Energy Awareness Month. It’s hard to believe that, in more than 25 years since the initiative began, we haven’t made more headway in energy conservation.  That is why I believe, as I mentioned in my previous Blog Stars Align for Energy Efficiency, that now is, indeed, the time to change our energy consumption habits.

Building Science Engineering has come a long way in understanding and communicating the physical, chemical and biological reactions among a building’s components.  These advances also help to drive the development of products to improve the energy efficiency of new and existing buildings.  Of course, the older the building the less energy efficient it probably is, but many structures can benefit from a mild energy efficiency makeover. 

Here are some tips to determine and improve energy efficiency:

  • Conduct an energy audit.  Locate obvious air leaks by examining gaps along the baseboard or edge of the flooring, at junctures of the walls and ceilings, and at electrical box openings and plumbing penetrations. If cracks are present, caulk and weather strip.
  • Understanding the R-value of fiberglass insulation is important. R-value means resistance to heat flow – the greater the R-value, the greater the insulation power. Visit www.energystar.gov for a map of the recommended R-value insulation levels needed in your region.
  •  Properly controlling moisture will improve the effectiveness of air sealing and insulation efforts. Some insulation systems can provide the added benefit of moisture management in addition to traditional insulation performance. Any insulation that is exposed to significant levels of moisture can decrease R-value performance.
  •  Insulated siding helps improve R-value, up to 30 percent.  Insulated siding can help reduce the heating and cooling costs of a home.
  • Solar reflective roofs can provide long-term protection as well as savings. Cool roofing technology is another simple way to lower energy consumption. This means less work for the air conditioning system, and minimizing the absorption of solar heat through the roof. Solar reflective coatings and solar reflective shingles should be considered for a roofing project.

 The Federal Energy Tax Credit creates a great opportunity for all of us to improve the energy efficiency of our homes.  Let’s not let Energy Awareness Month pass by without taking advantage of savings and efficiency all year long.Lucas Hamilton

Lucas Hamilton is Manager, Building Science Applications for CertainTeed Corporation.