Going Green for Tax Reasons

Going Green for Tax Reasons The Economic Stimulus Package will create new work for traditional building professionals. This economic recovery bill represents the largest federal investment in restoration, renovation and sustainable traditional building. American Recovery and Reinvestment Act of 2009 (ARRA), and more……… Tax Credits & Rebates “The American Recovery and Reinvestment Act of 2009 reinstated an expired IRS tax credit for improving energy efficiency in existing homes. The tax credits cover 30% of the purchase price of new high-efficiency water heaters, windows, and air conditioners, and for adding insulation, up to a $1,500 total per household. To qualify, an item must be 15% to 20% more efficient than the standard model. In addition, the package includes funds that states can use to sponsor utility rebates for the purchase of energy-efficient appliances (also 15% to 20% more efficient than standard) and for tax credits for installing solar panels and solar hot water heaters.” Sharon O’Malley, EcoHome magazine, March- April 2009 NeoCon 2009 Jamie Gibbs, ASID, IFDA, IFDA, WCAA In general, what does the package include? * Funding for school districts to modernize, renovate and repair schools. (There are 24,000 schools built before 1950) * Green affordable housing. Tax incentives for Americans to make their homes more energy efficient. * Mandates the federal government to make its buildings more energy efficient which will save taxpayers millions of dollars in energy costs. * Assistance to states and local governments to make energy efficient upgrades to buildings and communities. * Financial support for mass transit systems including the construction and renovation of inter-modal transit facilities to relieve the traffic congestion. On February 17th, President Obama signed the $789 billion economic stimulus bill that includes tax credit incentives for homeowners who make energy-efficient home improvements. The bill extends eligibility for tax credits through 2010 on energy-efficient improvements—including qualifying windows and doors! The bill includes the ability for homeowners to receive a tax credit of 30 percent of the cost of qualifying energy-efficient products up to a maximum of $1,500 per household for all improvements made in 2009 and 2010. Discussion about what the ARRA priorities is particularly encouraging. The American Institute of Architect's position paper on the subject is titled “Renew and Rebuild: Green Communities: Green Economy.” Likewise, the National Association of Homebuilders' staff summary on ARRA highlights tax incentives for "Energy Efficiency Housing Retrofits" ($250 million) and "Neighborhood Stabilization" ($2 billion). This is a paradigm shift for industry associations whose new development ethic has, arguably, contributed to over-building and waste for 50 years. The requirements to qualify for the new energy tax credit include: Windows purchased must be equal to or below a U-Factor of 0.30 and a Solar Heat Gain Coefficient (SHGC) of 0.30. The purchase of the qualified windows must be made during the taxable year for which the credit is being claimed. The credit is only allowed on the price of the qualified windows themselves, not on installation costs, onsite preparation, assembly or sales tax. The tax credit is allowable only for qualified window units placed in service in 2009 and 2010. Homeowners must to save their receipts for their windows purchased along with all window labels and stickers for verification and tax recordkeeping. The windows must be installed in the taxpayer's principal residence. Other Stimulus credits include an initial purchase such as: • $15,000.00 stimulus Package money for the deposit on foreclosure properties •$8,000.00 Federal income tax deductions for purchases and improvements Why should we and who benefits: • Property owners can now claim some major tax deductions on state, local and federal tax returns for the next two years. • Contractors, builders, and property managers also qualify for tax benefits. • Everyone will benefit by sound new construction and remodeling product specification and building practices. • It’s a law, so way not use it! Energy Efficiency Tax Credits • The Existing Home Retrofit Tax Credit (Tax Code Section 25C): Tax credits are available at 30% of the cost, up to a $1,500 lifetime limit, for installation in 2009 & 2010 (for existing homes only) of these products: – – – – – – – Windows and Doors: 30% of cost, up to $1,500 Insulation: 30% of cost, up to $1,5002 Roofs [Metal and Asphalt]: 30% of cost, up to $1,5002 HVAC: 30% of cost, up to $1,5002 Water Heaters [non-solar]: 30% of cost, up to $1,5002 Biomass stoves: 30% of cost, up to $1,5002 Installation costs may be included as part of the tax credit calculation for certain HVAC, Water Heater, and Biomass Stove installations. Commercial and Income Properties You may be eligible for a tax deduction of up to $1.80 per square foot for improving the energy efficiency of your existing commercial buildings or designing high efficiency into new buildings. The Energy Policy Act of 2005 includes a tax deduction for investments in “energy efficient commercial building property” designed to significantly reduce the heating, cooling, water heating, and interior lighting energy cost of new or existing commercial buildings. To be eligible, the energy-efficient commercial building property— such as a state-of-the-art lighting system—must be placed in service between January 1, 2006 and December 31, 2013. To qualify for the full deduction ($1.80 per sq. ft.) a building owner must make investments designed to reduce energy costs by at least 50%. A partial deduction, and more likely to qualify, of up to $0.60 per square foot is available for investments in one of three systems: lighting, heating and cooling or building envelope-designed to reduce energy costs by 16 and 2/3% (one third of the 50% requirement). Tax deductions reduce your overall taxable income with the value of the deduction dependent on your tax bracket. Tax credits, such as the ones provided for consumers in the 2005 Energy Policy Act, reduce the amount of tax you owe dollar for dollar. Who are the Players? • • • • • • • • • • • • • • • • • American Institute of Architects (AIA) American Institute of Building Design (AIBD) Consortium for Advanced Residential Buildings (CARB) U.S. Department of Energy (DOE) Energy and Environmental Building Association™(EEBA) U.S. Department of Energy Office of Energy Efficiency and Renewable Energy (EERE) ENERGY STAR® U.S. Environmental Protection Agency (EPA) Energy Value Housing Award (EVHA) Habitat for Humanity Integrated Building and Construction Solutions (IBACOS) Leadership in Energy and Environmental Design / U.S. Green Building Council (LEED/USGBC) Manufactured Housing Institute (MHI) National Association of Home Builders (NAHB) Partnership for Advancing Technology in Housing (PATH) SmartWay™ Transport Partnership The Wind, Solar, Geothermal and Fuel Cell Tax Credit (Tax Code Section 25D): • Tax credits are available at 30% of the cost, with no cap through 2016 (for existing homes and new construction) for: • Geothermal heat pumps • Solar Panels • Solar water heaters • Small wind energy systems • Fuel cells The energy-efficiency home products must be “placed in service” between Jan. 1, 2009 and Dec. 31, 2010. In what areas will people be able to claim a tax deduction: • Specific, qualifying materials • Green construction practices • Green removal and waste management practices • Water and energy saving products and practices • The donation of unused materials and recyclable existing materials from a remodel. Where do we get the best, latest information • • • • • • • • • • Energy Star: www.energystar.gov EPA: www.epa.gov www.insideadvantage.com www.nahb.org/efficiencytaxcredit www.recovery.gov www.MakingHomeAffordable.gov www.greenbuild365.org GCA International, LLC [newsletter@gcaintl.com] www.greenhomeguide.com www.homeenergyorg U.S. Green Building Council Regional Offices of USGBC There must be some money out there….. various headlines • Administration Announces Nearly $8 Billion in Weatherization Funding and Energy Efficiency • Obama Administration Announces $54.8 Million in funding for Local Energy Efficiency Improvements in Indian County. [Alaska] • Secretaries Donovan and Chu Announce Partnership to Help Working Families Weatherize Their Homes Tax Incentives will Vary by: • • • • • • Tax bracket: earned income Size of household Type of household: single-family, etc. Status of the property: old, new, historic State, neighborhood, and zone States’ share of Recovery Act Funding Funding Levels and Allotments from The Recovery Act • • • [reprinted with permission from:] District Lines - Winter 2009 - page 3 Historic Districts Council THE SILVER LINING: • TAX INCENTIVES FOR HISTORIC PROPERTIES LOCAL LANDMARK DESIGNATION PLUS listing on the National Register of Historic Places create the ideal combination of physical protection and financial assistance that owners need to preserve and maintain their historic property. When districts are listed or become eligible for listing on the National Register, owners can qualify for a number of financial incentives. What this means in plain English for owners of locally designated and National Register-listed properties is that preservation is not simply about government encroaching on property owners rights, but rather becoming the economic engine for enhancing the properties themselves. Some of these incentives include: Federal Investment Tax Credit Program for Income Producing Properties – Owners of income producing properties can receive a 20 percent federal income tax credit for the cost of substantial approved rehabilitation and restoration work. • • New York State Historic Tax Credit Program for Income Producing Properties [NY is an example, there are similar programs in most states] – Once approved to receive the federal credit, owners become eligible for a state tax credit equal to 30 percent of the value of the federal credit. • New York State Historic Homeownership Rehabilitation Tax Credit – Rehabilitators of owner-occupied buildings located in a distressed census tract, designated as a target area under Section 143 ( J) of the Internal Revenue Code, can receive a tax credit equal to 20 percent of the cost of repair work. • Preservation Easement Tax Incentives – By donating a preservation easement on the exterior of the property to a qualified organization Green Building and Design • Green building means improving the way that homes and homebuilding sites use energy, water, and materials to reduce impacts on human health and the environment. Building a green home means making environmentally-preferable and sustainable decisions. • Did you know that a typical home throughout the building process emits four times the polution [greenhouse gas emissions] of the typical car? While it is being built and over the many years it will be lived in this adds up to a HUGE number! Materials that qualify for tax incentives • “By designing buildings to be energy efficient, these architectural and engineering firms are leading the way in the fight against global warming,” says Deborah Jordan, EPA’s Air Division director for the Pacific Southwest. • To earn the ENERGY STAR, a home must meet guidelines for energy efficiency set by the U.S. Environmental Protection Agency. These homes are at least 15% more energy efficient than homes built to the 2004 International Residential Code (IRC), and include additional energy-saving features that typically make them 20–30% more efficient than standard homes. Geothermal Heat Pumps • Homeowners may claim a 30% credit on qualified expenditures for a system that services a dwelling located in the U.S. and used as a residence by the taxpayer. The maximum incentive is $2,000. Heat Pump Water Heater add-ons • These units qualify for the 30% Fed. Tax credit and may also qualify for local incentives. Heat pump water heaters are actually add-on components that work with existing storage water heaters. According to manufacturer E-Tech, "a heat pump water heater operates like your home heat pump air conditioner, but instead of heating and cooling air, it heats water." Whereas standard water heaters convert fuel into heat, which is then transferred to water, heat pump water heaters harvest heat from the air surrounding the unit and transfer it directly to the water. The water courses through the heat pump water heater where it is initially warmed, and then flows back into the storage tank. Solar Energy The Recovery Act tax credits for solar energy systems and fuel cells have been extended to 2016. New tax credits were established for small wind energy systems and plug-in hybrid electric vehicles. Tax credits for builders of new energy efficient homes and tax deductions for owners and designers of energy efficient commercial buildings were also extended." • Home builders will receive a tax credit of $1,000 for a house that reduces heating and cooling consumption by 30% and a $2,000 credit for meeting a 50% reduction. Solar Panels and SES • Solar energy systems [SES] are currently offered in seven different sizes: 3kW, 5kW, 10kW, 15kW, 30kW, 60kW, and 120kW. • Numerous manufacturers and representatives exist in all parts of the country. Make sure they offer EnergyStar rated systems. Doors • Energy efficient doors, whether for new construction or remodeling qualify for a tax credit. They must be approved brands and models. • Most of the major door manufacturers make retrofit and new construction doors using Forest Stewardship Council or similar certified lumber. Two examples are Marvin and Pella. Also, take a look at doors that are made for energy conservation. Fiberglass doors with highly insulating foamplastic interiors look good, take finishes well, and hold up better than wood or steel doors (durability being an ecological virtue, too). One brand that is well-insulated and Energy Star–rated is Therma-Tru. Marvin and Pella also make Energy Star–rated products. Ceilings • In all types of building structures, ceilings have historically been a huge drawback when it comes to LEED certification. Now with the new Recovery Act incentives and more ceiling products being certified as recyclable, made of [or partially of] recycled materials and containing no VOC or asbestos, there are many reasonable choices. A list of qualifying ceiling materials is available from the USGBC. • There are two leaders in the green ceiling market: • Armstrong • Hunter Douglas Anita Snader, Armstrong Environmental Manager FloorScore: Armstrong is a founding member and active participant in FloorScore - a voluntary certification program that identifies flooring and ceiling products that meet stringent air quality requirements for low emitting building materials. Hunter Douglas GreenScreen® GreenScreen® fabrics are the first line of PVCfree solar shading fabrics designed exclusively for internal and external roller shades and solar control systems. It is the only line of PVCfree contract fabric to offer a high level of sustainability while maintaining FR characteristics.. Floorcoverings • Eco-friendly flooring, whether for new construction or remodeling may qualify for a tax credit. They must be approved brands and styles. Much is determined by LEED qualifications: • Tax credits must demonstrate the increased energy efficiency in the property may using the material: reclaimed, renewable and recyclable materials are good choices. Carpeting • There are no specific Recovery Act tax incentives for carpet, but many carpets have LEED certification [points] attributes. There are also numerous carpet recycling programs and carpets made from recycled or recyclable materials. • Some states and local municipalities have tax incentive programs for the use of such carpets. Greenworks: recycles carpet At its Greenworks Center in Chatsworth, Georgia, Mohawk also recycles old carpet removed from office buildings and homes across the country, and then processes it into the plastics industry as well as other applications such as carpet cores. Carpet is rolled around these cores for transportation and storage. Typically, carpet cores are made from cardboard and discarded after each use. Mohawk saves thousands of trees every year by making reusable plastic cores from post-consumer materials. Mohawk can process all major types of synthetic carpet fiber: nylon, polyester, and polypropylene. What‘s more, the Mohawk Greenworks Center uses patent pending technology to process 100 percent of the carpet –fiber, backing, and latex — and recover 90 percent of all materials for reuse. Mohawk‘s Commitment Mohawk Industries focuses on environmentally friendly business practices that benefit the consumer, the environment, and the bottom line. For example, since 1999, Mohawk has recycled more than 17 billion plastic bottles for use in its PET (polyethylene terephthalate) carpet. With increased consumer interest in protecting the environment, Mohawk wants consumers to know that there are a variety of high-quality green options when it comes to flooring. Mohawks‘ everSTRAND(TM) PET carpet is made from 100 percent post-consumer materials. The Company extrudes the PET fiber from the three billion plastic bottles that it recycles each year — that‘s one in every four recycled plastic bottles in North America. SmartStrand and Dupont Sorona In a partnership with DuPont, Mohawk will launch its carpet featuring SmartStrand(R) with DuPont(TM) Sorona(R) renewably sourced polymer this fall. Not only does this luxuriously soft carpet offer extreme durability and revolutionary stain protection, it will also soon be partly produced from renewable corn sources rather than petroleum. Lee‘s GREEN carpet backing: Unibond U2™, the new generation of Unibond®. A revolutionary, thermoplastic and fully recyclable broadloom backing system, Unibond U2 couples world-class performance with industryleading sustainability. The backing system is 50 percent less dependent on petroleumbased products, and incorporates a rapidly renewable bio-based resin. Wood flooring • Bamboo, linoleum, cork, reclaimed wood, wood substitute flooring like coconut palm, • What it is: Lumber from sustainable sources; natural beauty and durability without the guilt. Choices in environmentally friendly flooring range from certified lumber harvested under Forest Stewardship Council guidelines to recycled and engineered wood. • What makes it green: FSC certification, which tracks lumber to sustainably harvested sources. Recycling: Repurposed wood comes from such sources as old barns, wine tanks, or trestles. Technology: Green home ideas• Eco-friendly kitchen counters • Nature's own flooring • Alternative to wood • Low flow, high style Engineered flooring maximizes supplies by bonding veneers on a plywood base. Ceramic and Stone Tiles GREEN TILE FLOORING » TILE » What it is: Made of ceramic, glass, or stone, tile has unrivaled durability. It works in high-traffic areas such as entries, kitchens, and hallways. Manufacturers now offer more floor tiles with the look and color range of stone, ceramic tile, terra-cotta, or terrazzo, but with recycled content. » What makes it green: Recycled-content tile makes use of otherwise wasted by-products diverting glass, used tiles, granite dust, stone tailings, or unfired material from landfills and offsetting its high "embodied energy" cost (price of energy required to get a product from its source). Counters and Backsplashes Oceanside Glass tiles backsplash wall Fortis Arbos Wood Mosaics backsplash Vetrazzo worktop Squak Mountain Stone worktop Paint and other surface applications • Eco-friendly surface applications, whether for new construction or remodeling may qualify for a tax credit. They must be approved brands and styles. Much is determined by LEED qualifications: low of no VOC, etc. • Surface materials such as paint must be used as a part of a larger energy-efficient upgrade or new construction to qualify. Environmentally friendly paint • Environmentally friendly low-VOC [0-50] paints are becoming the popular choice for a variety of reasons, most notably because they lack odor. These paints are formulated to meet modern indoor air quality standards. Because of this, the room can be put back into use almost immediately after being painted. In addition, since they are not considered hazardous waste, consumers can take pride in knowing that they are not harming the environment when disposing of any leftover paints. This nature-inspired trend lends itself particularly well to designing multiple color schemes, with a nod toward how colors naturally fit together. For example, by combining pale beige with a brighter, true blue recreates the look of earth and sky. On the other hand, create the appearance of a sun-dappled forest by complementing a muted green wall color with burnished gold metallic trim. Benjamin Moore: EcoSpec and Natura Sherman Williams: GreenSure Pittsburgh Paint and Glass: Pure Performance Coronado: Air-Care • • • • Soft treatments • Eco-friendly and energy efficient window treatments, whether for new construction or remodeling may qualify for a tax credit. They must be approved brands and materials. • Much is determined by LEED qualifications. • Again, most new draperies are not going to qualify for the Recovery Act tax credits unless they are in integral part of a reduced energy program for the property. Hard treatments • 30% of cost up to $1,500.00 by the end of 2010 • Installation costs are not included. • Qualifying manufacturers only: – Comfortex – Hunter Douglas – Graber – Levelor to previous page Hunter Douglas Plumbing fixtures • Eco-friendly and certified Water Sense fixtures, whether for new construction or remodeling may qualify for a tax credit. They must be approved brands and styles. Much is determined by LEED qualifications: Water Efficient Options for Indoor Water Use Water-Efficient Products: Showerheads: 2.0 gpm or less Faucets: with 1.5 gpm aerator Toilets: 1.28 gpf or less (HETs) Waterless Urinals Clothes Washers: Water Factor ≤ 6.0 Dishwashers: 5.8 gal/cycle or less Hot water recirculation systems/instant hot water units Irrigation Controllers Appliances • Whirpool Green Touch™ Program • Whirlpool Corporation has a program to help make designing, building and marketing sustainable homes simpler. The Green Touch™ Program provides you with easy-to-specify appliance packages and meaningful incentives. • Appliances that save energy, conserve water and support indoor air quality are necessary components of a sustainable home. When you choose an appliance package from the Green Touch™ Program, you are contributing toward sustainable building practices that make a difference—without sacrificing what your homebuyers count on: quality, the right style and performance. Whirlpool Brands with EnergyStar • • • • • • • Gladiator® GarageWorks Jenn-Air KitchenAid Maytag Whirlpool Amana There are over 300 products that qualify Sub-Zero was the first ―Green‖ appliance • For Sub-Zero, green is more than just an Energy Star rating. Even the largest refrigeration product, the Sub-Zero PRO 48, uses less energy per month than a 100-watt light bulb. From being built in the USA, to supporting organic farmers and food artisans, to using renewable energy, to extensive recycling, to sourcing environmentally friendly materials and supplies, - Sub-Zero & Wolf have been ‗green‘ long before the term even existed. Green Kitchens Tax credits are available For EnergyStar appliances and WaterSense plumbing fixtures along with many LEED points for eco-friendly cabinetry, stone, ceramics, glass and other surface materials. There are layers of credits available from Fed. Tax deductions to local incentives and utility company programs. Neff cabinets Ontario-based company Neff uses marine-grade plywood, a waterproof product that isn't treated with chemicals, rather than formaldehyde-laden particle board. The cabinets have very low-tozero Volatile Organic Compound (VOC) emissions and run the design gamut from traditional to modern. Henrybuilt cabinets With offices in Seattle and New York, Henrybuilt offers clients the option of choosing a cabinet system from the company's modular lines (one of the few green cabinetry companies to have these). Its products are crafted from rapidly renewable bamboo or FSC-certified woods, and are formaldehyde free. The best part for us is that Henrybuilt is happy to work remotely, sending plans and designs over email and finally shipping materials for overseas clients. Water Heaters Green builders also can select the most efficient models based on national recognitions and standards. Energy Star recently established a residential water heating program to recognize gas, whole-home tankless water heaters with an energy factor (EF) of 0.82 or better, gas condensing units with an EF of 0.80, and electric heat pump water heaters with an EF of 2.0. So far, however, Energy Star has not recognized electric tankless water heaters, which typically have an EF of 0.98 to 0.99 compared to 0.91 to 0.95 for an electric tank unit, because it is still a small market and the energy savings are too low, according to Energy Star. Builders also can earn two points toward LEED certification if the gas unit has an EF of at least 0.80 or an electric tankless unit has an EF of 0.99. The National Green Building Standard awards points for whole-house tankless units that are either direct-vented or powervented to improve indoor air quality and minimize contamination from combustion byproducts. Heating and Cooling [HVAC] ECR International.Freewatt (at left) is a home heating system that is a green alternative to traditional products. Designed for heat and power, the natural-gas unit combines an Energy Star-rated, high-efficiency natural gas furnace or boiler with a Honda generator so electricity can be used to power the home or sold back to the grid. 888.800.1551. www.freewatt.com. HVAC, HEAT PUMPS, FURNACES AND WATER HEATERS Energy efficient heating, cooling, ventilation and hot water supply partially qualify a property, within the meaning of Section 2.01 of Notice – 160920-05 (Notice 2006-52) that satisfies both of the following conditions: 1) The property is installed as part of the heating, cooling, ventilation and hot water systems of a building; and 2) It is certified that the heating, cooling, ventilation and hot water systems that have been incorporated into the building, or that the taxpayer plans to incorporate into the building subsequent to the installation of such property, will reduce the total annual energy and power costs with respect to combined usage of the building’s heating, cooling, ventilation, hot water and interior lighting systems by 16 2/3% or more – meeting the minimum requirements of Standard 90.1-2001. The required 16 2/3% reduction must be accomplished solely through energy and power cost reductions for the heating, cooling, ventilation and hot water systems. Reductions in any other energy uses, such as receptacles, process loads, refrigeration, cooking, and elevators, are not taken into account in determining whether the 16 2/3% reduction achieved. Homeowners are eligible for tax incentives for solar water heating and photovoltaic system tax credit is for 30 percent of the cost of the system, up to $2,000. Builders are eligible for a $2,000 tax credit for a new energy-efficient home that achieves 50 percent energy savings for heating and cooling over the 2004 International Energy Conservation Code (IECC). But at least one-fifth of the energy savings must come from building envelope improvements. There is also a $1,000 tax credit to the builder of a new manufactured home which achieves 30 percent energy savings for heating and cooling over the 2004 IECC. Exterior surface materials • Many eco-friendly and energy efficient exterior construction materials qualify for tax incentive programs. The list of qualifying product is growing weekly and the latest information can be found at either EPA or USGBC’s websites. • Most of these products can be installed like, and have the appearance of traditional exterior materials. Windows The requirements to qualify for the new energy tax credit include: Windows purchased must be equal to or below a U-Factor of 0.30 and a Solar Heat Gain Coefficient (SHGC) of 0.30. The purchase of the qualified windows must be made during the taxable year for which the credit is being claimed. The credit is only allowed on the price of the qualified windows themselves, not on installation costs, onsite preparation, assembly or sales tax. The tax credit is allowable only for qualified window units placed in service in 2009 and 2010. Homeowners must save their receipts for their windows purchased along with all window labels and stickers for verification and tax recordkeeping. The windows must be installed in the taxpayer's principal residence. • Energy efficient windows, whether for new construction or remodeling qualify for a tax credit. They must be approved brands and models: Simonton, Pella, Anderson, and more [specific models] Siding • Energy efficient siding materials, whether for new construction or remodeling qualify for a tax credit. These have different constraints because the siding needs to also be ecofriendly. They must be approved brands and model. Rankings are based on • the “R” rating, • raw materials, & • shipping. shipping distance. Roofing • The Clean Energy Stimulus and Investment Assurance Act of 2009 [introduced by Sen. Maria E. Cantwell (D-Wash.) intends to create green-collar jobs and revitalize the economy through clean energy investments. But the bill also provides financial incentives for homeowners or commercial building owners which chose to install green roofs on their buildings. 30% of upgrade cost. Wind Turbines • residential wind turbines qualify for a $4,000 credit. • Bergey Windpower is advertising a 30% tax credit for their products: •This is a technology that has a huge backing in Washington, but some local constraints have not really been addressed. • Many municipalities and platted subdivisions have covenants restricting the installation of free-standing energy sources. •It is virtually impossible to install wind turbines in a federal urban historic district. Whirlwind Solar Energy Systems, Inc. www.whirlwoindsteel.com • Whirlwind considers itself an industry leader when it comes to energy efficiency in metal roofing. Offering three different product lines, Whirlwind currently has 10 energy approved colors on the Agricultural/Residential line, 12 on the Commercial/Industrial line, and 7 on the Standing Seam/Architectural line. In addition to energy star approved colors, Whirlwind also offers Cool Roofing, which has been proven to save up to 40% on your cooling costs by installing a Cool Metal Roof. Whirlwind’s feature color that meets all requirements for Title 24, Energy Star, and CRRC is Cool White. Cool White has a Reflectivity rating of 0.75, an Emissivity rating of 0.86, and a Total Reflective Index of 91.7. In addition to Cool White, Whirlwind also offers Solar White has a Reflectivity rating of 0.7, an Emissivity rating of 0.85, and a Total Reflective Index of 85.1. In addition, all Whirlwind material contains a minimum 32% up to 59% total recycled content, which also qualifies for the recycle credit under USGBC LEED-NC v2.2. Landscaping • There are credits in the following categories: – Lighting – Water conservation – Paving materials – Plant material choices The EPA is regulating these credits and many are being offered locally, so the incentives differ. Most are based on LEED standards. Lighting fixtures The products qualify for a 30% tax incentive, not the installation. • Lamps: To qualify for Energy Star, compact fluorescent fixtures *CFL’s+ must have specific pin-type bases, called GU24, that fit only CFLs; these fixtures prevent homeowners from reverting to incandescent. While slightly more expensive, pin-based CFLs withstand heat better than screw-in CFLs, and should last for 10,000 hours, or about seven years of normal use, versus about 6,000 hours for screw-in lamps. LED • • • LEDs A much different source of light than incandescent or CFLs, LEDs (light emitting diodes) are actually tiny, encapsulated semi-conductors that can last for 30,000 hours to 50,000 hours or more. While LEDs are widely known as colored indicator lights in items such as computer monitors or car dashboards, in recent years manufacturers have begun to offer them in shades of white and grouped in the shape of a light bulb so they can be screwed into traditional fixtures or replace incandescent downlights. But they’ve been most successful so far as accent lights built into a fixture or surface. While LEDs are not yet as efficient as compact fluorescents—their efficacy is between 30 lumens per watt and 60 lumens per watt—manufacturers and government researchers are investing millions of dollars in advancing them. LED efficiency is improving by about 100% every 24 months, estimates Joseph A. ReyBarreau, a lighting designer and associate professor at the College of Design at the University of Kentucky. “In five to 10 years, it may be the most predominant light source everywhere,” he says. At five to 10 times the cost of compact fluorescent fixtures, large LED fixtures are still out of the price range of most residential applications. But designers say they are using small LEDs in cove, undercabinet, and step lighting applications. In years to come, organic LEDs (LEDs stretched into thin films) could change the way we see lighting entirely, allowing designers to stretch a light source across a wall or ceiling and turning fixtures and sockets into a remnant of the past. • • Halogen • Halogen • While CFLs are generally the most energy- and costefficient option, they’re still not the best choice where color quality or dimmability is most important. Halogen lights, a more efficient form of incandescent, provide warm, bright light and are fully dimmable, meaning they may be best for applications such as dining rooms or reading lights where color quality is the biggest concern. Philips Lighting’s Halogena, for example, offers energy savings of about 30% over standard incandescent, and are rated to last about 3,000 hours. Lighting controls • • • Lighting Controls Efficient lighting goes beyond the bulb, with simple control systems that help save energy with little notice by the homeowner. Switched motion sensors or dimmers should be used with any remaining fixtures that still use incandescent sources; they also can be used with energy-efficient sources. Switched motion, or vacancy, sensors must be manually turned on, but they automatically shut off after a period of time with no motion in the room. Dimmers save a percentage of energy slightly less than the amount they are dimmed, for both incandescent and fluorescent sources (i.e., dimming a bulb 25% saves about 20% of the electricity). Energy savings from dimming LEDs is variable. Whole-house, intelligent lighting systems allow builders to automate a home’s lighting controls by setting lights to automatically dim 10% or 15%, or allowing homeowners to shut off all of a home’s lights with the push of a button. Lutron has a control system that includes a “green” button that trims light levels down throughout the home. • Light Fixtures • • • • CFL‘s [Compact florescent Lamps] LED [light emitting diodes] Halogen The light manufacturing industry is not sitting quietly by watching an entire 125-year old technology disappear. Something is going to replace the billions of incandescent lamps that are sold each year. General Electric, the largest U.S. bulb maker, is hoping to introduce by 2010 an incandescent lamp projected to be twice as efficient as its traditional lamp, and another as efficient as CFLs by 2012. LED Lighting Fixtures Inc. has already introduced, to great commercial success, its LR6 downlight with an efficacy of 60 lm/W, which is better than many CFLs. It is dimmable, has color rendering close to that of an incandescent and fits into standard 6-inch recessed cans. A smaller LR4 version should be available by March. The company has also developed a prototype PAR-38 lamp using LED technology with an efficacy of 113.6 lm/W, higher than any reflector style CFL on the market. Although not commercially available, the lamp is an example of exciting innovations to come. • Insulation Rigid foam, spray foam Foam insulation Cellulose insulation Fiberglass matting Thermafleece Mineral Wool All types qualify for the 30% tax incentive [$1,500 cap], but not all brands. Insulation costs of insulation are covered. Insulated Panels Consisting of solid one-piece pre-cut SIP units, the Insulspan Structural Insulated Panel System comes ready to assemble as wall, floor, or roof components, reducing construction time and improving efficiency, the company says. According to the firm, the system's roof and wall assemblies offer a 40 percent to 60 percent reduction in heat loss and significantly reduce air leakage. 800-726-3510. www.insulspan.com. Take it a step further • Many of the materials and practices that for two years will qualify for tax incentives also take you steps further towards LEED certification of a project. • The qualifying items parallel the LEED guidelines. • There are also local and state rebates available from governments and local utilities LEED • ―LEED has emerged over the last few years as the [green building] system of choice for many purchasers and governments. It has stringent requirements and high standards for those who supply, build and operate those buildings.‖ Frame was speaking during a briefing at COCA‘s recent annual general meeting. The point-based LEED system for rating the ―greenness‖ of buildings is the most widely used in North America. What is LEED and why should I know about it? • As with any design specialty, green design needed its own standards. LEED (Leadership in Energy and Environmental Design) is a voluntary, consensus-based collection of national standards for developing highperformance, sustainable buildings and interiors. It has become increasingly recognized by professionals as a complete framework for assessing building performance and meeting sustainability goals. Developed by USGBC, there are currently four available LEED standards: LEED-NC for new construction and major renovation projects; LEED-EB for existing building operations and maintenance; LEED-CI for commercial interiors projects; and LEED-CS for core and shell projects. USGBC also offers a comprehensive system of professional accreditation, training and practical resources. • From a contractor‘s perspective, a LEED project requires additional ―thinking‖ time when it comes, for example, to sourcing products — credits are given for using materials with recycled content and selecting items manufactured locally. • ―Implementation of a waste-management plan may require a bit more work on the contractor‘s side, but usually ends up being cost-neutral or resulting in savings. Leed Policy Manual Leed Rating System Leed Rating System LEED Residential Guide • The LEED for Homes Reference Guide, a comprehensive tool for residential builders using the LEED for Homes Green Building Rating System, is now available for purchase online at www.usgbc.org/store The reference guide offers over 350 pages of information, resources and standards for the LEED credits covered within the residential green home certification program. The cost is $100 for members of the U.S. Green Building Council and $125 for non members, plus shipping and handling. • Publication date is April 2008 Leeds Project Summary Form LEED Stats • Green States Top 5 states with LEED-registered homes California New Mexico Massachusetts Maryland Mississippi Top 5 states with LEED-certified homes – – – – – California Oregon Michigan New York Maine • • LEED for Homes Certification Breakdown Certified: 24% Silver: 40% Gold: 22% Platinum: 15% Indoor Water Use in Homes US Average (AWWARF Study) 18.6 15.0 11.6 10.9 9.5 1.0 2.7 Total: 69.3 gpcd Base Home (EPAct) 8.2 12.9 8.9 10.9 9.5* 0.7 2.7* 53.8 gpcd Water Efficient Home 6.5 7.4 7.1 6.6 9.5* 0.4 2.7* 40.2 gpcd Indoor Use Area Toilets Clothes Washers Showers Faucets Leaks Dishwashers Other *left the same for comparison. 15.5 gpcd 13.6 gpcd Gpcd = Gallons per capita per day Green Home Ratings LEED for Homes • What is LEED for Homes? – LEED = Leadership in Energy and Environmental Design – Developed by US Green Building Council • LEED-H Water Efficiency (WE): at least (3) points are required – Water Reuse – Irrigation System – Indoor Water • All Faucets ≤ 2.0 gpm • All Showerheads ≤ 2.0 gpm • All Toilets ≤ 1.3 gpf • All Faucets ≤ 1.5 gpm • All Showerheads ≤ 1.75 gpm • All Toilets ≤ 1.1 gpf 5 points 4 points 6 points total: 1 point 1 point 1 point 2 points 2 points 2 points Certified: Silver: Gold: Platinum: 45 points 60 points 75 points 90 points Green Home Ratings NAHB Green Homebuilding Guidelines • What are the Green Homebuilding Guidelines? – Developed by NAHB in cooperation with Green Building Initiative to be a more workable alternative to LEED-H. • Indoor Water Efficiency: at least (6, 13, or 19) points are required – – – – – – – – – – On-demand hot water Hot water pipes ≤ 30 ft. Energy Star water saving appliances Showerheads below code Lav faucets below code Toilets below code Dual flush toilets Pedal/sensor faucet shutoff Graywater reuse Composting/waterless toilet 6 points per unit 9 points 7 points each 2 points each 2 points each 4 points 6 points Bronze: 237 points 6 points Silver: 311 points 6 points Gold: 395 points 6 points How does the Gov rate green? How do you build points towards LEED certification? Raw Materials • Look for: – Natural materials vs. synthetics – Sustainably obtained/harvested – High recycled content – No to low VOCs in manufacturing – Lower weight – Minimum shipping distance – Recyclable packaging – No off gassing Certifications Energy Efficiency Water Efficiency Cleaners Sustainable Wood Cabinetry EnergyStar WaterSense GreenSeal FSC KCMA State Agencies and Utility Companies • Since each state and municipality will vary as to the qualifications and incentive programs, I would suggest a web search for the specific location. A few phone calls will also help. • Each state government website has a tab for energy credits and tax incentives. • Many utility companies have on-going rebate programs. These are available from the websites or with a phone call. • Make sure to confirm the programs before “selling” them to a client. Recovery Act Inclusions • The Federal package includes $300 million that states can use to sponsor utility rebates for the purchase of energy-efficient appliances (also 15% to 20% more efficient than standard) and for tax credits for installing solar panels and solar water heaters. States with Tax Incentive Programs • • • • • Colorado Housing and Finance Authority (visit www.chfainfo.com) Idaho Housing and Finance Association (visit www.ihfa.org) Kentucky Housing Corporation (visit www.kyhousing.org) Missouri Housing Development Commission (visit www.mhdc.com) New Jersey Housing and Mortgage Finance Agency (visit www.njhmfa.com) • New Mexico Mortgage Finance Authority (visit www.housingnm.org) • • • • Ohio Housing Finance Agency (visit www.ohiohome.org) Pennsylvania Housing Finance Agency (www.phfa.org) Tennessee Housing Development Agency (visit www.thda.org) Partial list When a project is done, what do you do to extend tax incentive activities: • Donate materials for reuse • Clean the construction site in a green mode • Implement permanent waste removal methods – Recycle – Reuse – Reclaim • Practice green property management Non-Profit Agencies • Habitats for Humanity is probably the most famous nationwide group, but there are others like Lighthouse and strictly local, smaller groups. Many come with volunteer manpower and transportation. They are easy to find on the internet or the phonebook. Some even advertise. • The tax deduction of donated materials is based on the wholesale value. • You don’t need to look far for organizations that will accept the donation of: – Unused construction materials – Recyclable materials – Old cabinets, flooring, lighting, gutters, etc. Watch for these product labels Cabinetry, flooring, tile, furniture, carpet, textiles, lighting Cabinetry, furniture, textiles Energy-Efficient Mortgages Energy-Efficiency Mortgages Typically, these mortgages offer better terms for buyers of green homes, such as slightly lower closing costs and interest rates. Most require that the home have a green certification from a well-recognized organization. The energy-efficiency mortgage doesn’t provide money to the builder, but it does allow buyers to qualify for larger mortgages, typically 5% to 8% more, which can help the pro sell more green homes, VanderWerf said. But, he cautioned, it is hard to find out if lenders offer energy-efficiency mortgages because even if a national lender has a program, local branches often don’t know about it. “Local lenders deal in five to 10 types of mortgages,” he noted, advising pros to always verify with a mortgage company that it offers energy-efficiency mortgages before sending clients there. And if a lender doesn’t offer energy-efficiency mortgages, ask it to develop a product, he said. Energy-Efficient Mortgages offer homeowners a tax deduction and a way to finance improvements Select improvements to be covered Figure 2 shows a sample EEM report. The full set of recommended improvements costs almost $8,900, with a lifetime savings of over $11,000. The homeowner would have to select a subset of those improvements that is less than the EEM ceiling for the property, either 5% of the appraised value, or $8,000. Note that each individual improvement does not have to realize a lifetime savings; only the combined package of improvements has to do so. Typically, EEMs are used to purchase or refinance existing homes. You can also use an EEM to purchase a new, already energy-efficient house. In those circumstances, the only real benefit is that the qualification ratios are stretched from 29% and 41% to 31% and 43%, letting you qualify for a larger mortgage. There are also EEM programs, with higher limits and different requirements, for renovating properties. Information provided by HomeEnergy.Org: March/April magazine, Steve Mann author Thank you for joining me. If you would like to have an email handout of this presentation, please send me your address: jamie@jamiegibbsassociates.com