Tax credits come from multiple sources, some federal and others regional based on energy efficient incentives. See the quick Q&A and links below for more information on your regions.
Where can I find more regional information on credits and incentives?
1). View the Database of State Incentives for Renewable’s & Efficiency (DSIRE) is a comprehensive source of information on state, local, utility, and federal incentives and policies that promote renewable energy and energy efficiency. Visit the DSIRE website and click on your state for more local inventive information.
2). Tax Incentives Assistance Project (TIAP) 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 amended several times. Visit TIAP website for more information and links that are available for you.
How do I qualify and apply for a residential tax credit?
To receive the $2000 tax credit for homes, the builder must follow the guidelines set out in IRS Notice 2007-27. To do so, the home applying home must undergo an inspection from an energy rater certified through the Residential Energy Services Network (RESNET). To find a RESNET energy rater in your local area, visit the RESNET website. To assist in the application process, The Internal Revenue Service has created IRS Form 8908 for guidance.
Additional incentives are available through the Energy Star program, be sure the check these out and consult a tax professional with any questions: Energy Star Consumer Tax Incentives
How do I qualify & apply for a commercial tax deduction?
Owners of commercial buildings must follow the procedures listed in IRS Notice 20006-52. 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.
Additional Energy Star incentives may also be available. Click here for more information on tax credits for Commercial Buildings from the Energy Star website.
Can I receive a partial tax deduction?
Yes…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: Interior Lighting System; Heating, Cooling, Ventilation, and Hot Water System;, and Building Envelope. For more information on partial deductions, visit IRS Notice 2006-52
It’s no question that SIPs help significantly for home and building owners seeking environmental certifications and financial incentives.
While LEED Rating Systems can be useful just as tools for building professionals, there are many reasons why LEED project certification can be an asset:
LEED for Homes (LEED for commercial is below)
LEED for Homes provides defined goals and processes for all team members to evaluate potential design challenges and offer solutions. This approach ensures the interoperability of systems in a high-performance home. Accountability forms are used to verify the participation of team members in the design process.
Once the home design is complete, the LEED for Homes Provider or Green Rater will conduct an estimate of how the home will score on the rating system. Four levels of certification are offered depending on the amount of points earned: Certified, Silver, Gold, and Platinum. Based on the preliminary evaluation, the builder may wish to include additional green technologies to meet the desired goal. SIPS CAN EARN UP TO 46 TOTAL LEED POINTS, MAKING A PROJECT “CERTIFIED” WITH SIPS ALONE!
How does the inspection process work?
The Green Rater conducts two onsite inspections of the home, one during construction, usually just prior to drywall installation, and another when the home is completed. During the final inspection, the Green Rater conducts the required blower door test, duct leakage test, and other performance tests. The rater is also responsible for verifying that all the green measures in the preliminary evaluation have been successfully installed in the home.
The final step in the certification process is submitting the appropriate paperwork to the LEED for Home Provider who will review the documentation and certify the project. The builder receives a certificate from the USGBC and the home can be marketed as LEED for Homes certified.
Premier SIPS & LEED for new construction & major renovation
The Leadership for Energy and Environmental Design (LEED) for New Construction is the flagship of the LEED body of rating systems administered by the U.S. Green Building Council (USGBC). LEED for New Construction provides guidelines for the design and construction of high-performance commercial. institutional and high-rise residential buildings.
Initiative that require or provide incentives for LEED certification have been adopted by 166 localities and 31 state governments as of November 2008. With many school districts and higher educational institutions jumping on the LEED bandwagon as well, the LEED for New Construction rating system is a driving force in the green building movement.
How does LEED work?
Projects certified under the rating system must meet a total points minimum by accumulating points in the following categories: Sustainable Sites, Water Efficiency, Energy and Atmosphere, Materials and Resources, and Innovation and Design Process. Building must also meet prerequisites in each category. Four levels of certification are available, based on the total number of points awarded: Certified, Silver, Gold, and Platinum.
SIPS CAN EARN UP TO 39 TOTAL LEED POINT IN COMMERICAL NEW CONSTRUCTION OR MAJOR RENOVATIONS, ALMOST “CERTIFIED” WITH SIPS ALONE!