This is the easiest to understand explination of all the tax credits I have seen. Click on the picture below for the full size version. Then roll over this interactive poster to see the requirements and deadlines for remodeling-related energy improvements and equipment. The information comes from Remodeling magazine’s coverage of the stimulus package.
Categories: Business Matters · Green
HBA member Meritage Construction Inc. is set to begin one of the first Certified Passive House ™ remodel projects in Oregon.
They will be remodeling a 2,100 sq. ft. SE Portland home according to super energy-efficient building standards, and once it’s complete, the family will no longer need their gas furnace or fireplace, relying only on “internal” heat gains, small electric bathroom heaters, and a small amount of hydronic heating from their existing high-efficiency natural gas water heater.
Meritage Construction will use Passive House techniques to create a super-insulated, yet well-ventilated home that loses extremely little heat compared to conventional buildings. The approach reduces energy demand for heating to about 10% -30% of heat required by typical homes.
Categories: Green
Leading a seminar at the NAHB National Green Building Conference earlier this month in Dallas on “Practical Strategies for Green Marketing,” Jim Groff, president of the York, Pa. firm Baublitz Advertising, offered some ideas on how green builders and remodelers can become a dominant force in their marketplace.
Categories: Business Matters · Green · National News
Tagged: Certified Green Professional, National Association of Home Builders
A remodeling project that combines universal design and green remodeling can be a strong seller in today’s weakened market, particularly with baby boomers “coming of age,” according to Mike Vowels, of Stewardship Remodeling in Seattle.
Vowels sees a strong link between the two remodeling concepts because both involve consumers planning for their futures and incorporating sustainability in a home.
But Vowels also cautions that designing the remodeling solution offered to potential clients has to be “seamless and invisible,” or consumers won’t find it appealing.
“You need to be careful when presenting the subject of ‘aging-in-place’ to prospective clients because some people are uncomfortable with the language,” Vowel says. “People don’t want to envision themselves getting old or becoming less capable.”
Instead of using the term, “roll-in shower,” for example, Vowels talks to his prospects about curb-less European showers. Instead of ramps, he discusses step-less grade changes leading to the front entrance or back patio.
Vowels markets and sells universal design and green remodeling as a total home remodeling solution rather than as two compatible concepts.
“You wouldn’t recognize the differences if you didn’t point them out,” he says. “You have to be able to demonstrate that the remodeled home would have all these tasteful changes without anyone being aware that anything is different or out of the ordinary. None of the changes should look temporary, generic or institutional.”
The most effective way to accomplish such a seamless remodel, Vowels says, is to anticipate future needs, plan accordingly and integrate the universal design and green solutions.
“It’s about how smart your house can be,” says Vowels. For example, a design that plans for future changes can include stacked closets that are properly sized so that they can be converted into an elevator shaft later, if needed. Such pre-planning meets the home owner’s needs now and their changing needs in the future.
The approach makes the whole remodeling project much more marketable and easier to sell because there are more features and benefits to sell — and because they work together, he says.
“Unlike a carton of milk or a steak, the function, safety and comfort of your home should not have an expiration date on it,” Vowels says.
The overall combination of benefits that result from combining universal design and green remodeling into one seamless remodeling solution is helping Vowels differentiate his company from his competition.
“We’re trying to distinguish ourselves on universal design by showing the attractive side of a very prudent choice for our customers to consider,” Vowels says.
The Stewardship Remodeling Web site, www.universalandgreen.com, and all the company’s marketing materials help focus its branding and reinforce the reason to integrate the two remodeling concepts.
Universal design and green remodeling, Vowels says, answer the current and future needs of prospective home owners by creating a finished product that is timeless in its use, contributes positively to the environment and is sustainable.
Categories: Business Matters · Green · National News
Tagged: Aging-in-Place, Baby Boomers, Universal Design
Leaders of the Professional Remodelers Organization attended a press event today in support of HB 2626. Read more about the bill below.
Dave Nielsen, Senator Jeff Merkley, Tom Skarr, Mitch Stanley, Jon Chandler
From KGW.com
Oregon lawmakers hope to encourage property owners to invest in energy efficiency upgrades by expanding a state loan program.
A bipartisan group of legislators announced their plan Wednesday, saying the move would help combat climate change while also creating jobs throughout the state by dramatically increasing the number of efficiency projects each year.
The program would allow property owners to take out loans and grants, financed through state bonds, to help fund upgrades. They could repay the loan at a low interest rate over a long period time through their utility bills.
Sponsors said property owners would see an almost immediate decrease in their utility bill, even with the loan payment tacked on.
“We know that energy efficiency and renewable energy projects are good investments in the future,” said state Rep. Jules Bailey, D-Portland, one of the bill’s chief sponsors.
The legislation does a number of things to encourage financing these products, including offering simplified payment options, a point of contact that helps plan and implement the projects and increased bond funding.
Bailey said tens if not hundreds of millions of dollars worth of projects could be funded through the program if approved, the added benefit of which would be economic stimulus to the state.
The bill has attracted both Democratic and Republican sponsors. One of them, state Rep. Tim Freeman, R-Roseburg, called the plan “the most cost-effective way to meet the challenges of climate change.”
U.S. Rep. Earl Blumenauer, D-Ore., was also on hand to support the program, which he said could become a national model.
“I will be watching very carefully what these gentleman and their colleagues do,” Blumenauer said. “I think the work that they’re going to be doing can have broad national implications.”
Categories: Business Matters · Goverment Affairs · Green
Tagged: EEAST bill, HB 2626
Energy Star has published comprehensive information on how the housing industry and consumers can take advantage of the federal tax credits for energy-efficient home improvements in the new economic stimulus package. The credits are expected to significantly increase demand for green renovation projects this year and next, according to federal officials.
Congressional economists project that the new provisions will generate an estimated $6 billion in remodeling work by the end of 2010.
The credits will be the centerpiece of new marketing efforts for remodeler Scott Sevon, CGR, GMB, CAPS, GMR, CGP of Sevvonco Inc. in Palatine, Ill. “We will be featuring information for consumers on our Web site, brochures and other promotional materials,” he said. “We want to make sure they can come to us for accurate information.”
Remodelers trained in and experienced with making energy-efficient upgrades are well-positioned to take advantage of increased consumer interest in consuming less power. They can also use the tax credits to encourage home owners to undertake a more complete renovation that can be certified under the National Green Building Standard as part of NAHBGreen, the NAHB National Green Building Program.
The Internal Revenue Code Section 25C for existing homes, which had expired at the end of 2007, was reinstated as part of the economic rescue package passed by the Bush Administration last fall. Installing energy-efficient windows, doors, roofing and insulation as well as furnaces, air conditioners and heat pumps all qualified for the credit.
But remodelers found that the terms of the 25C credit — equal to only 10% of the cost of each product and with a lifetime cap of $500 — weren’t quite strong enough to get home owners off the fence and into a contract.
Under the stimulus legislation signed by President Obama, the percentage of the cost and lifetime cap have been tripled to 30% and $1,500, respectively, and the deadline for installing them has been extended through the end of 2010.
In addition to expanding the 25C tax credit, the IRS 25D credit for renewable energy products has also been expanded and is even more generous for specific improvements — including geothermal heat pumps, solar panels, solar hot water heaters, small wind energy systems and fuel cells. The 30% tax credit applies to these products but there is no cap on their cost through 2016. In addition, these credits also apply to new construction, as well as to remodeling and renovation projects.
The newly expanded tax credits are in alignment with industry research showing that remodeling and retrofitting the nation’s older homes will have a far more significant impact on reducing residential energy consumption than meeting even the most aggressive efficiency goals for new homes, according to Greg Miedema, CGR, CGB, CAPS, chairman of NAHB Remodelers.
A December 2008 survey by Whirlpool Corporation revealed that 84% of consumers said that energy efficiency is significantly more important than water use or other potential savings when it comes to home appliance efficiency. Seventy-two percent of respondents seek the Energy Star label when making purchasing decisions.
“These new tax credits are another way that the home building industry can combat the potential effects of global climate change by encouraging home owners to make energy-efficient improvements to their homes,” said Miedema.
A 2008 California study showed that homes built before 1983 were responsible for 70% of the greenhouse gas emissions related to single-family envelope energy consumption.
The study also found that spending $10,000 to retrofit a 1960s home could save 8.5 tons of carbon at a cost of $588 to $1,176 per ton, depending on existing tax credits and incentives. By comparison, increasing the energy efficiency of a new home 35% over current state requirements would cost about $5,000 and would reduce emissions by 1.1 tons at a cost of $4,545 per ton.
The bottom line is that retrofitting existing homes with energy-efficient features is four to eight times more carbon- and cost-efficient than adding further energy-efficiency requirements to new housing, the study showed.
Tax Credit How-to
Details on qualifying improvements are available on the Energy Star Web site.
Remodelers should familiarize themselves with the model types and products that qualify for the tax credit so they can advise their customers. However, they do not need to give their clients the product sales receipts to verify the claim. Certification statements in the manufacturer’s product information may suffice.
Home owners can claim the 25C and 25D credits on Form 5695 when they prepare their income tax returns. They should also retain records that include:
* Name and address of the manufacturer
* Identification of the component
* Make, model or other appropriate identifiers
* Statement that the component meets the 25C standards
* Climate zones for which the criteria are satisfied
* Additional information for storm windows, if applicable
* A declaration that the certification statement is true
Categories: Business Matters · Green
Tagged: Energy Star, Tax Credit
Beefed-up tax credits for energy-efficient home improvements in the new economic stimulus package are expected to help increase demand for green renovation projects this year and next.
The Internal Revenue Code Section 25C for existing homes, which had expired at the end of 2007, was reinstated as part of the economic rescue package passed by the Bush Administration last fall. Installing energy-efficient windows, doors, roofing and insulation as well as furnaces, air conditioners and heat pumps all qualified for the credit.
But remodelers found that the terms of the 25C credit — equal to only 10% of the cost of each product and with a lifetime cap of $500 — weren’t quite strong enough to get enough home owners off the fence and into a contract.
Under the stimulus legislation signed by President Obama, the percentage of the cost and lifetime cap have been tripled to 30% and $1,500, respectively; the list of eligible improvements has been expanded and the deadline for installing them has been extended through the end of 2010.
The newly expanded tax credit also is in alignment with industry research showing that remodeling and retrofitting the nation’s older homes will have a far more significant impact on reducing residential energy consumption than meeting even the most aggressive efficiency goals for new homes, according to Greg Miedema, CGR, CGB, CAPS, chairman of NAHB Remodelers.
“These new tax credits are another way that the home building industry can combat the potential effects of global climate change by encouraging home owners to make energy-efficient improvements to their homes,” said Miedema.
A 2008 California study showed that homes built before 1983 were responsible for 70% of the greenhouse gas emissions related to single-family envelope energy consumption.
The study also found that spending $10,000 to retrofit a 1960s home could save 8.5 tons of carbon at a cost of $588 to $1,176 per ton, depending on existing tax credits and incentives. By comparison, increasing the energy efficiency of a new home 35% over current state requirements would cost about $5,000 and would reduce emissions by 1.1 tons at a cost of $4,545 per ton.
The bottom line is that retrofitting existing homes with energy-efficient features is four to eight times more carbon- and cost-efficient than adding further energy-efficiency requirements to new housing, the study showed.
Tax Credit How-to
Details on qualifying improvements are expected to be available soon on the IRS Web site.
Remodelers should familiarize themselves with the model types and products that qualify for the tax credit so they can advise their customers. However, they do not need to give their clients the product sales receipts to verify the claim. Certification statements in the manufacturer’s product information may suffice.
Home owners can claim the 25C credit on Form 5695 when they prepare their income tax returns. They should also retain records that include:
* Name and address of the manufacturer
* Identification of the component
* Make, model or other appropriate identifiers
* Statement that the component meets the 25C standards
* Climate zones for which the criteria are satisfied
* Additional information for storm windows, if applicable
* A declaration that the certification statement is true
Categories: Business Matters · Green · National News
In honor of the HBA Green Building Week here is a green building story for your enjoyment. Don’t miss the Eco-Vative Green Building Products Expo tomorrow and Green Building classes this week.
Concrete is one of the single most environmentally friendly construction products available. It offers stability, durability and design flexibility for the residential marketplace and environmental advantages through every stage of manufacturing and use. And it offers sustainability. Because old concrete can be recycled it can be reused almost indefinitely. The following are concrete’s primary environmental benefits:
Created From an Abundance of Raw Materials
Concrete draws upon some of the earth’s most common and abundant minerals for its raw materials. Portland cement, which makes up about 12% of concrete, is manufactured from limestone, clay and sand. Sources of aggregates used to make concrete — sand gravel and crushed stone — are plentiful. In addition, aggregate can contain recycled materials such as slag, a by-product of steel manufacturing. Also, when using Portland cement, a portion of it can be replaced with fly ash, a by-product of coal-burning power plants, and similar materials.
Fuel to Produce Concrete Can Come From the Waste Stream
The process of making cement also can use recycled materials. High-energy wastes such as old tires can be used as fuel in the cement-making process. One million old tires can fuel a single cement kiln for a year — conserving fossil fuels and keeping old tires out of landfills. Other recycled waste used in the production of cement can include used motor oil, disposable diapers, industrial solvents and sludge.
Local Production Reduces Transportation Costs and Fuel
Cement and concrete supplies are highly local or regional. At least 60% of all concrete is produced within 100 miles of the construction site where it is used. Wood and steel products, on the other hand, typically have to be transported hundreds or, sometimes, a thousand miles or more to the job site.
Concrete’s Thermal Mass Yields Energy Savings
The thermal mass of concrete buildings and homes reduces temperature swings — and can save owners energy year-round. During the air-conditioning season, for instance, a concrete building generally only will require the cooling system to be in operation at night — during off-peak hours when electric companies can produce power more efficiently. Also, many of today’s concrete wall systems, such as insulating concrete forms (ICFs), combine the mass of concrete with foam insulation — creating an exterior wall envelope that through thermal mass, reduced air infiltration and increased R-value can reduce heating and cooling costs by as much as 40%.
Concrete Reduces Construction Waste Because Fewer Components Are Needed
Concrete construction requires fewer kinds of building products — such as sheathing and insulation —than wood-frame construction. Plus, concrete is created on an “as needed” basis, eliminating the waste inherent in sheet goods and dimensional products for framing. Because fewer materials are needed, building with concrete puts less waste in landfills. And if replacement or demolition is required, old concrete can be ground up and reused as coarse aggregate or pavement sub-base material.
Concrete’s Durability Can Weather Time and the Weather
Concrete does not rust, rot or burn, so housing stock built with concrete components such as wall systems can stand for generations. Concrete is less susceptible to moisture damage and can generally “breathe” and dry — if the concrete structure is not too close to adjacent structures. Concrete driveways will far outlast their asphalt competitors, while items such as fiber-cement siding are much more durable than competing cladding materials. By simply outlasting other materials, concrete conserves energy and resources. In addition, homes built with concrete also are more likely to withstand natural disasters such as hurricanes, tornados and fires than traditional wood-frame housing stock.
Concrete Homes Can Create a Healthier Indoor Environment
Concrete can promote a healthier indoor atmosphere because it is practically inert and requires no volatile organic-based preservatives. The solid concrete walls in homes built with exterior concrete framing systems serve as a continuous barrier against air infiltration, which can greatly reduce the level of airborne dust and allergens when a fresh air exchanger and humidifier are used.
Concrete Homes Are Increasing in Popularity
From 1999 through 2005, the share of homes built with concrete walls increased from 5.9% to 17.9%. This increase not only measures a growing popularity in concrete homes, but a change in attitudes as well. Not many years ago, the idea of building a concrete home generated blank stares among potential home owners or prompted questions about why anyone would want to do such a thing. Now, however, many consumers are aware of this type of construction, understand its benefits and want to know how much it will cost and where to find the nearest supplier or builder. A combination of factors is driving these changes in perception and attitude — a rise in energy prices, an increase in the amount and destructiveness of natural disasters and the rise of the green building movement.
Aesthetically, the Depth of the Windowsill Tells the Tale
While growing in popularity, many people still have the mistaken perception that a concrete home looks more like a bunker or fallout shelter than a home. Aesthetically, however, with most concrete wall systems in use today, it’s difficult to drive down a street and pick out which home is concrete. Concrete home exteriors are finished with siding, stucco, brick and stone, just like wood-frame construction. Also, like with wood-frame construction, the interior of a concrete home is finished with drywall, though with some systems such as precast concrete, interior walls are simply painted. For both outdoor and indoor areas, decorative concrete is rapidly growing in popularity for all types of home construction. Traditional concrete flatwork can be stained, stamped, stenciled or polished to achieve a wide variety of patterns, colors and textures. Beautiful custom concrete countertops can achieve a similar range of styles.
So what’s the primary aesthetic difference between concrete homes and wood-frame construction? Simply put, the walls of a concrete home are thicker. But the only way to tell the difference on a finished home is by the greater depth of the windowsill of a concrete home — which is a definite bonus in the eyes of many home owners.
Categories: Educational Opportunity · Green
Tagged: Concrete, sustainable remodeling practices
Don’t miss the Eco-Vative Building Products Expo, the kick-off of HBA Green Week, next Tuesday, Jan. 27, at the Doubletree Hotel, Lloyd Center. It will feature green, sustainable products and services for residential builders and remodelers. Plus, the keynote seminar of the day will be from nationally recognized Building Science speaker Mark LaLiberte at 12:45pm.
Green services for residential markets are on the upswing. The value of the green building industry is expected to reach 4.7 billion by 2011, as projected by Sustainable Industries Journal Top Ten Green Building Products publication. Services such as green mortgages, environmental consulting, and green building design are expected to grow along with the upward trend in green building products.
Products like backsplash tiles, cabinet hardware, lighting and countertops are all being made, some of them locally, using materials that are routinely thrown away in quantities large enough to make new things from. Other green products can be recycled at the end of their useful life, contribute to healthy indoor air quality, or reduce the level and amounts of toxics in the building process.
Categories: Business Matters · Educational Opportunity · Green
Tagged: Mark LaLiberte
Building, Marketing and Financing Green
Wednesday, Jan. 28, 8:00-11:00 a.m.
$30 HBA members/$40 non-members
Come and learn about what is new in marketing and building the green home. Nationally known speaker, Dave Porter of Countrywide will present on this timely topic. Continental breakfast included.
Click here to register.
High Performance Homes
Wednesday, Jan. 28, 2:00-4:00 p.m.
$25 HBA members/$35 non-members
Learn about the rating system for building to High Performance Homes standards and the materials that will comply with this certification. Our panel of experts from Earth Advantage, Oregon Department of Energy and Parr Lumber will take you through this informative session.
Click here to register.
Indoor Air Quality
Thursday, Jan. 29, 8:00-11:00 a.m.
$30 HBA members/$40 non-members
Speakers Duane Woik and Dan Cote take you through a description of best practices in improving indoor air quality for residential new construction projects. This class will include and overview of common offenders, ventilation strategies, and product choices and information. This class is sponsored by Energy Trust of Oregon, ENERGY STAR New Homes, and Earth Advantage. Continental breakfast included.
Click here to register.
Green Tax Incentives for Building & Remodeling
Friday, Jan.30, 8:00-10:00am
$25 HBA members/$35 non-members
This informative seminar will outline the various financial incentives available to energy efficient builders and remodelers, including federal and state tax relief. Continental breakfast included.
Click here to register.
Categories: Business Matters · Educational Opportunity · Green
Tagged: Dave Porter, Earth Advantage, Energy Trust of Oregon, High Performance Homes
