Tax Credits are Driving Sales

Credits for Existing Homes
Many other tax credits are available in other product categories than are listed below...

Definitions

• "Tax Credit" and a "Tax Deduction" - The American Recovery and Reinvestment Act (ARRA) offers a tax CREDIT for Energy Efficiency measures. It's important to explain the difference between a "credit" and a "deduction" to customers - the value is far greater for the credit than the deduction. A tax credit reduces the actual amount of taxes owed. For example, if you owe $1,500 in Federal Tax and you qualify for a $1,500 Energy Efficiency Tax Credit then you owe nothing in Federal Tax. A tax deduction only reduces taxable income and so the reduction in tax due is only a fraction of the deduction.
• "U-factor" - The U-value (or U-factor) describes how well a building element conducts heat. The smaller the U-value number, the better. Under standardized conditions, it measures the rate of heat transfer through a building element over a given area. The usual standard is at a temperature gradient of 75F°, at 50% humidity with no wind.
• "SHGC factor" - Solar Heat Gain Coefficient - SHGC is the amount of solar radiation that makes its way through glass and is expressed as a number between 0 and 0.87. The lower a window's SHCG, the less solar heat it transmits, and the greater its shading ability. SHGC may be expressed in terms of the glass alone or may refer to the entire window or door assembly.
• "30% of product cost, up to $1,500" - The $1,500 credit maximum is per homeowner for all improvements combined not per category group.
• "IECC" - International Energy Conservation Code. For detailed information.

Product Categories

Windows and Doors (and potentially Skylights)
To qualify, after June 1, 2009, products in this category must have a U-factor<=0.30 and an SHGC <=0.30 and the value of the credit is 30% of the cost of the materials (no installation labor), up to $1,500.
To qualify for the tax credit for improvements made prior to June 1, 2009, the products must meet Energy Star criteria.

Storm Windows and Storm Doors
In combination with the exterior window over which it is installed, the U-factor and the SHGC must be <=0.30. Same as above, the value of the credit is 30% of the cost of the materials (no installation labor), up to $1,500.Time frames for this credit are the same as for windows and doors above.

Insulation
The product must meet the 2009 IECC & Ammendments standards. Not ALL insulation products qualify and the manufacturer (and we) will supply documentation. The tax credit is the same, 30% of the cost of the material, up to $1,500.

Roofs (Metal and Asphalt)
Presently, the only product available to Bethel Mills for qualifying roofing is Everdrain. There is an asphalt roof supplier presently going into production to provide us with a qualifying product. Until we carry that product, Everdrain is the only roofing product that qualifies in this category.

States Invest More in Energy Efficiency - WSJ.com

Vermontbiz.com says: Vermont #6 in the country for energy efficiency efforts

Vermont has one of the strongest Energy Efficiency programs in the country. Galen Barbose, a staff research associate at the national lab, said the spending increase for energy efficiency programs has been so sharp "that there's an emerging shortage of trained professionals to design the programs, measure results and do the actual work of retrofitting buildings."

Fill the need and profit... Nationally, efficiency program spending is expected to rise from $3.1 billion in 2008 to $7.5 billion to $12.4 billion by 2020. "It's far cheaper to invest in energy efficiency than to build new power plants. A separate study by ACEEE, the scorecard author, found that it costs an average of 2.5 cents to save a kilowatt hour of electricity through the programs. Building new resources like power plants, by contrast, would cost three or more times as much, not counting pollution costs."


Take action:
Efficiency Vermont can help contractors become certified so that they are eligible for substantial incentives - homeperformance@veic.org

These incentives include:

$ Project Bonus: Efficiency Vermont pays participating contractors a cash bonus for each satisfactorily completed and reported Home Performance with ENERGY STAR project.

$ Discount Incentives and Financing: Home Performance with ENERGY STAR contractors can offer their customers access to cash incentives and/or reduced rate fi nancing for qualifying home energy improvements.

$ Diagnostic Equipment Incentives: Rebates on equipment costs are available to help BPI-certified contractors purchase diagnostic testing equipment.

$ Marketing Support: Advertising templates and materials, marketing leads, technical assistance, and financial incentives for cooperative advertising are available from Efficiency Vermont to help contractors market Home Performance with ENERGY STAR services.

$ Reduced Cost BPI Training and Certifi cation: Efficiency Vermont offers discounts on technical training and certifi cation to contractors who become BPI certified and meet Home Performance with ENERGY STAR participation requirements. Training is designed to meet BPI’s Building Analyst, Heating, and Envelope Specialist certifi cations. Training topics include health and safety, basic building science, combustion principles, inspections and diagnostics, and installation and maintenance.

$ No-Cost Mentoring: Efficiency Vermont experts provide training to help contractors prepare for BPI certification, and ongoing field mentoring to assist certified contractors in delivering high quality Home Performance with ENERGY STAR services.

$ Advanced Training: Efficiency Vermont offers free advanced technical training for BPI continuing education credit to Home Performance with ENERGY STAR contractors. In addition to technical subjects, advanced training covers sales and marketing techniques and customer service best practices.

Stimulus A - Z: The American Recovery and Reinvestment Act (ARRA) and You

The American Recovery and Reinvestment Act (ARRA), and its agressive tax credits, have proven successful, at least in the construction industry. More and more customers are investing in window and door replacement, insulating and roofing. Their justifiable concern over rising energy costs, (they may fluctuate but no one expects them to go down) are driving the investments.

Tax credits are available in many industries. Let's explore the three areas that affect our business.

Here is the short form - Requirements and deadlines for remodeling-related energy improvements.

Credit available: 30% of cost, materials only, $1,500 maximum for all improvements combined.

Timeline: Must be "placed in service" (ready and available for use) January 1, 2009 - December 31, 2010.

Windows and Skylights:
Before June 1, 2009: Must meet Energy Star criteria
After May 31, 2009: U-factor and SHGC less than or equal to 0.30.

Storm Windows:
Must comply with International Energy Conservation Code (IECC) bfor abpplicable climate zone in combination with window over which it is installed. (Use either the 2001 Supplement to the 2000 IECC or the 2004 Supplement to the 2003 IECC.)

Exterior Doors:
U-factor and SHGC less then or equal to 0.30.

Storm Doors:
Must comply with IECC default U-factor in combination with primary door.

Insulation:
Must meet 2009 IECC and amendments. Must be expected to last five years or have two-year warranty. Primary purpose must be to insulate. As of mid-September, the IRS had not ruled on SIPs or insulated siding but it is believed that SIPs are eligible.

Metal and Asphalt Roofs:
Energy-Star qualified.

We can help make sure your customers qualify and get these tax credits. Use Bethel Mills as your clearinghouse for this service.

Can We Stop Global Warming Without Giving Away the Store?

Margie Alt - Executive Director of Environment America - seems to think we can.

She believes that we should repower America with 100% clean energy. She refers to a number of energy sources in her article. I encourage you to read it yourself and let me know what you think... you can read it here:
Can we stop global warming?

Huttig Greener Selections Workshop

Oct. 14, 2009 - Sheraton Hotel, Norwood MA

Huttig Building Products generously sponsored this Greener Selections Workshop. With "green" being the buzzword for our industry, Huttig realized that contractors and suppliers need real knowledge about what that means. Industry experts Mark LaLiberte and Gord Cooke spoke at the workshop.

Sponsors on hand, to answer questions about energy-efficiency and tax credits, were ThermaTru, Masonite, Typar, Huttig Windows and Owens Corning. Each had displays and were put to the test by the nearly 200 event participants with questions about features, advantages and benefits of their products.

Mark LaLiberte spoke, in significant detail, about "Implementing Green" and related it to building science. His slides and presentation style kept it interesting and informative. There were several examples of poor building practices and their end results.You can visit his website to see much more about him.










Gord Cooke too, was a fantastic speaker and spoke about what green really means to the building industry. Gord spoke more about the selling of green. Showing how customers, investing in green, is the best investment available today. With much greater returns on investment than savings accounts or even funds in the stock market, green, energy-efficient investments in the home give the greatest return.

Both speakers spoke highly of the Energy and Environmental Building Association (EEBA)and visiting their website was strongly encouraged.

Overall, the conference was informative and entertaining. The venue was great as was the food!

David Allen on "Getting Things Done"

David Allen and Getting Things Done

I was going to attempt to explain who David Allen is and about his book "Getting Things Done". A explanation, better than I can produce, can be found at Wikipedia. Also, the video below, produced by Fast Company Magazine, is an interview with David where you can hear, in his own words, some of the ideas and principles he has compiled to create his overall system of Getting Things Done.



Here's a video produced by David's company...

Low VOC Adhesives - Liquid Nails moving into the market

As VOC restrictions tighten, some companies turn to newer technologies. Read this complete article here.
Liquid Nails Polyurethane Construction Adhesive has entered the low VOC product market. This new product, and other products like it save contractors from being exposed to the volatile compounds during installation and saves homeowners from having to live with the gassing off of these compounds.

Energy Tax Credits - Benefits to All

The American Recovery and Reinvestment Act has provided a significant tax credit through the "Federal Tax Credit for Energy Efficiency" program. The credits are on the purchase of a number of items for home renovation or for new construction. Qualifying windows, doors, insulation, etc. can get the consumer a 30% tax credit - up to $1,500. This credit allows the customer to take the total amount of the credit directly off the bottom line of the taxes they owe. If they owe $5,000 in taxes and they qualify for the $1,500 credit then their tax liability is reduced to $3,500. This is a great deal for the customer, saves on their energy costs, helps contractors make sales and ultimately boosts the overall economy.

Tax Credits - Help customers know where they can save

Department of Energy - Online Training - Energy Codes and Standards

Online Energy Code Training


Energy codes and standards play a vital role in the marketplace by setting minimum requirements for energy-efficient design and construction. They outline uniform requirements for new buildings as well as additions and renovations. This course covers basic knowledge of codes and standards; development processes of each; historical timelines; adoption; implementation, and enforcement of energy codes and standards; and voluntary energy efficiency programs. Most sections have links that provide additional details on that section's topic as well as additional resources for more information if you are interested.

CEUs: Participants who successfully complete the course and test and enter their AIA numbers will be submitted to AIA by BECP for 1.0 AIA/CES LU (HSW). A certificate of completion is available for participants who can self-report for CEUs, including for ICC renewal certification. Note: you must be a registered user of the BECP Training site to access course quizzes and tests.