Residential Buildings - New Construction

Under the provision for energy efficient homes in the U.S. Energy Policy Act of 2005, an eligible contractor (or owner-builder) who constructs a qualified new energy efficient home may qualify for a credit of up to $2,000. The credit is available for all new homes, including manufactured homes constructed in accordance with the Federal Manufactured Homes Construction and Safety Standards.

The home qualifies for the credit if:

In general, to meet the energy saving requirements, a home must be certified to provide a level of heating and cooling energy consumption that is at least 50 percent below that of a comparable home constructed in accordance with the standards of the 2004 Supplement to the 2003 International Energy Conservation Code. It must also have building envelope component improvements providing a level of heating and cooling energy consumption that is at least 10 percent below that of a comparable home. 

Buildings built using an ICF exterior shell will qualify as the building envelope improvement needed, and when combined with an efficient HVAC system and  well insulated attic will in virtually all cases comply with the requirements of the Tax Credit.

Commercial Buildings

The Energy Policy Act offers business taxpayers a deduction of $1.80 per square foot for commercial buildings that achieve a 50% reduction in annual energy cost to the user, compared to a base building defined by the industry standard ASHRAE/IESNA 90.1-2001. Energy costs refer only to heating, cooling, lighting and water heating, since only these uses are within the scope of the ASHRAE standard and within the control of the building designer. Each of the three energy-using systems of the building — the envelope, the heating, cooling and water heating system, and lighting system — is eligible for one third of the incentive if it meets its share of the whole-building savings goal. Explicit interim compliance procedures are provided for lighting.

Eligible buildings include commercial buildings such as: offices, retail buildings, warehouses, etc., rental housing of four stories or more, and publicly-owned buildings. For publicly-owned buildings, there is an interesting provision allowing the credit to pass through to the "person primarily responsible for designing the building."

For additional details and links to other sites on this topic, click on  http://www.natresnet.org/taxcredits/default.htm