New Energy Tax Credit to Boost Demand for Remodeling Projects
According to industry experts and speakers at the NAHB commemorated Green Day held on Jan 21st at the International Builders Show in Last Vegas, the most significant energy savings can be achieved by making changes to existing homes, which are far less energy-efficient than today's new homes.
Beefed-up tax credits for energy-efficient home improvements in the new economic stimulus package are expected to help increase demand for green renovation projects this year and next.
The 25C existing home remodeler credit is extended through the end of 2010, increasing the credit rate from 10 percent to 30 percent, increasing the maximum credit cap from $500 to $1,500, and expanding the set of qualifying materials.
Tax credits are available for home improvements:
Tax Credit Aims to Reduce Residential Energy Consumption and Combat Global Climate Change
The new tax credit is in alignment with industry research showing that remodeling and retrofitting the nation’s older homes will have a far more significant impact on reducing residential energy consumption than meeting even the most aggressive efficiency goals for new homes.
New tax credits will allow the home builders to combat the potential effects of global climate change by encouraging home owners to make energy-efficient improvements to their homes.
A 2008 California study showed that homes built before 1983 were responsible for 70% of the greenhouse gas emissions related to single-family envelope energy consumption. The study also found that spending $10,000 to retrofit a 1960s home could save 8.5 tons of carbon at a cost of $588 to $1,176 per ton, depending on existing tax credits and incentives. By comparison, increasing the energy efficiency of a new home 35% over current state requirements would cost about $5,000 and would reduce emissions by 1.1 tons at a cost of $4,545 per ton.
Air-sealing the building envelope with Icynene® insulation and air barrier material can improve energy efficiency by up to 50% and significantly reduce related greenhouse gas emissions. Icynene’s Manufacturer Certification Statement will be required along with the receipts to qualify for the Energy Tax Credit.
Tax Credit provision of the new Economic Stimulus Bill could easily yield as much as a 20% reduction in net cost to the homeowner and potentially allow them to take full advantage of the Tax Credit by just making energy efficient upgrades with Icynene®!
The bottom line is that retrofitting existing homes with energy-efficient features is four to eight times more carbon- and cost-efficient than adding further energy-efficiency requirements to new housing.
Add Green to your homes while saving some green in your pocketbooks. For more information, contact your nearest Icynene Licensed Dealer.