US Government: Residential Energy Efficiency Tax Credit

Another wonderful benefit of Pentoir's Spray Foam is the tax advantages. These tax benefits are set forth and extended yearly. A Pentoir Spray Foam representative will answer any questions that you may have regarding these benefits.

The federal tax credit has been extended for the 2011 tax year. However, there have been some significant changes. The new 2011 version of the tax credit will cover 10 percent up to $500 (not 30 percent up to $1,500).

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IRS Tax Credit Form

Copy of IRS tax credit form

 

Federal Tax Incentives

Spray Polyurethane Foam (SPF) will enable homeowners, commercial building owners, and builders and manufactures of new homes to take advantage of tax credits available as part of the Energy Policy Act of 2005. A tax credit is different from a tax deduction in that it reduces the amount of income tax you have to pay versus reducing the amount of income subject to tax.

 

Homeowners

Under the Energy Policy Act of 2005, homeowners can take a credit of 10% of the cost up to $500 for installing spray polyurethane foam as an insulation material. This tax credit only applies to the cost of the insulation materials and not the labor costs associated with the installation of these materials. Installations must be done after December 31, 2005, and before January 1, 2008 to qualify for the tax credit.

For more information on this tax incentive for homeowners, consult the following helpful links:

Tax Incentives Assistance Project (TIAP)
IRS Notice 2006-26
IRS
Energy Star

 

Commercial Building Owners

A business owner or tenet of a new or existing commercial building that is constructed or re-constructed to save at least 50% of the heating, cooling, ventilation, water heating, and interior lighting energy costs over a building that meets ASHRAE Standard 90.1-2001 is eligible for a tax deduction of up to $1.80 per square foot. Partial deductions of $0.60 per square foot are available for improvements to the building envelope, lighting, or heating and cooling systems that reduce the total heating, cooling, ventilation, water heating, and interior lighting energy use by 16 2/3%.

For more information on this tax incentive, consult the following helpful links:

Tax Incentives Assistance Project (TIAP)
Energy Star

Builders and Manufactures

Builders or manufacturers of homes are able to receive a $2000 tax credit if they build homes projected to save at least 50% of the heating and cooling energy over a comparable home. A comparable home is one that meets the standards of the 2003 International Energy Conservation Code. Manufactured home producers are able to receive a $1000 credit if they produce homes that save 30% of the heating and cooling costs or that qualify for the Energy Star Homes program. These credits are available for homes placed in service and ready for use from January 1, 2006 through December 31, 2008.

See these sites for further information:

IRS
Tax Incentives Assistance Project (TIAP)
Energy Star