Energy Efficiency
The United States
Government energy labs estimate that air
infiltration wastes up to 40% of every home heating
and cooling dollar. It is one of the country's most
critical home energy problems. Today, new homes are
being built utilizing the Spray Polyurethane Foam
system and enjoying the latest money-saving
technology for new home construction. The
closed-cell nature of the Polyurethane Foam stops
air leakage problems at the source. Air leakage or
infiltration, occurs when outside air enters a house
uncontrollably through cracks and openings. Properly
sealing such cracks and openings in your home can
significantly reduce heating and cooling costs,
improve building durability and creat a healthier
indoor environment.
IRS Tax Credits for Handi-Foam and Handi-Seal
Polyurethane Sealants
The Energy Policy Act of 2005 provides for specific
tax credits tied to the use of certain energy
efficient home improvements. These tax credits are
in effect from January 1, 2006 through December 31,
2007:
Homeowner Tax Credit for Insulation Home
Improvements.
Tax credits are available to existing homeowners
for many types of home improvements including adding
insulation, replacement windows, and certain high
efficiency heating and cooling equipment. The final
rules and forms to clarify which products and
services qualify for the tax credits will be
developed by The Internal Revenue Service (IRS),
and, in the meantime, the IRS has provided guidance
for consumers, which can be found in the following
notice:
IRS Notice for Home Improvement Tax Credits 2006-26
The purpose of this Technical Bulletin is to certify
that Handi-Foam and Handi-Seal Polyurethane Foam
products used as an insulation material qualify for
the tax credit as an "Eligible Building Envelope
Component" under section §25C of the Internal
Revenue Code.
Business Tax Credit for New Homes.
The tax credit for the construction of new energy
efficient homes is $2,000 per home, if the builder
achieves a 50% reduction in projected energy use as
compared to the 2004 International Energy
Conservation Code with supplements. These tax
credits apply to new homes located in the United
States whose construction is substantially completed
after August 8, 2005 and that are acquired from the
eligible contractor after December 31, 2005 and
before January 1, 2008, for use as a residence.
Business Tax Credit for Commercial Improvements.
The law permits an immediate tax deduction (versus
Depreciation) for energy efficient commercial
buildings meeting a 50% energy reduction. The
deduction, generally $1.80 per square foot, but
$0.60 per square foot in some cases, is effective
for property placed in service between 2006-2007.
Additional information about this program can be
found on the EPA's Energy Star® web site;
http://www.energystar.gov/index.cfm?c=products.pr_tax_credits#1
