blankblank blank
Building Envelope Tax Incentives

Move cursor over image to view control photo.
Take advantage of Federal tax incentives for improving your building envelope and energy performance.

The Federal Energy Policy Act of 2005 provides energy saving tax incentives for homeowners, builders, and building owners. The incentives are due to expire at the end of 2007.

from Wikipeida - Energy Policy Act of 2005:

Commercial Building Deduction

The Act contains provisions for commercial buildings that make improvements to their energy systems.

Energy improvements completed in 2006 and 2007 are eligible for tax deductions of as much as $1.80 per square foot.

The incentives focus on improvements to lighting, HVAC and building envelope.

Improvements are compared to a baseline of ASHRAE 2001 standards.

Many buildings are eligible for tax deductions for improvements completed or planned within the normal course of business, and can thus "free ride" for the new incentives.

Achievement of these benefits requires cooperation between the facilities/energy division of a business and its tax department. A tax advisor with engineers on staff may serve as a bridge between these two historically separate business divisions.

For municipal buildings, benefits are passed through to the primary designers/architects in an attempt to encourage innovative municipal design.

These benefits emanate from the Department of Energy's desire to make all buildings "zero energy" within 20 years.

Read more:

from Knauf Insulation:
IRS releases guidelines for 2005 Energy Act
Tax credits for new home insulation, adding insulation to existing homes explained

(WASHINGTON, DC and SHELBYVILLE, Ind., February 21, 2006) The U.S. Treasury Department and Internal Revenue Service today released more detailed guidance for homeowners and builders on qualifying for energy efficiency tax credits within the Energy Act of 2005. According to Knauf Insulation, these incentives provide additional incentive for homeowners and builders to insulate to optimum levels, leading to more valuable and sustainable homes and long-term savings on utility costs.

Read more:

from Thompson Online:
Energy Act of 2005 Creates Incentives for Energy Efficiency in Commercial and Residential Real Estate

August 30, 2005 - Overview: The Energy Policy Act of 2005, which President Bush signed on August 8, 2005, is an omnibus law comprised of 18 titles that alters the energy landscape significantly. Click to view our overview of 31 Key Effects of the Energy Policy Act of 2005.

The Energy Policy Act of 2005 (the "Act") authorizes a number of incentives to encourage the use of energy efficient equipment, appliances, and materials in government and commercial property and residential homes. Among other initiatives, the Act:

1. Creates new annual graduated energy usage reduction goals for all federal buildings, with the final goal of 20% reduction in energy consumption from 2003 levels by 2015 (§ 102).

2. Mandates the creation of new federal building energy efficiency performance standards. These revised standards must require that, if life-cycle cost-effective, new federal buildings be designed to achieve energy consumption levels at least 30% below those of the version currently in force, and sustainable design principles (i.e., "green building" techniques) must be utilized (§ 109).

3. Permits the U.S. Department of Energy ("DOE") to make grants for state energy conservation plans to assist local government to improve the energy efficiency of public buildings. To be eligible, such assistance must promote either the construction of new energy-efficient public buildings that use at least 30% less energy than a comparable public building or the renovation of existing public buildings to achieve reductions in energy use of at least 30%. This section authorizes $30 million per year in appropriations for 2006-2010 (§ 125).

4. Allows deductions for the cost of energy efficient commercial building property, not to exceed $1.80 per square foot, for lighting, heating cooling, ventilation, water heating and the building envelope (e.g., insulation, windows, doors, roofing, exterior materials) when installed as part of a design to increase energy efficiency by 50% for these items. If the savings achieved are less than 50%, but otherwise meet the DOE's goals for energy efficiency, the deduction shall be reduced to $0.60 (§ 1331).

5. Adds credits for energy efficient residential homes, including: $2,000 for a house with 50% lower energy consumption than a comparable house, with 1/5 of that 50% coming from elements of the building envelope; and $1,000 for a house with 30% energy savings, with 1/3 of such savings coming from building envelope elements (§ 1332).

6. Creates credits for energy efficient improvements to existing homes, including 10% of the amount paid for qualified improvements up to certain aggregate limits (§ 1333), $100 or more for energy efficient appliances that meet the Energy Star criteria (§ 1334), and 30% of the amount paid for photovoltaic (solar) panels, solar water heating, and fuel cell property, not to exceed $2,000, $2,000, and $500 respectively. The credit can be carried over to the next year if costs exceed the limit, and installation costs may be added to the mix (§ 1335). There is also a credit of $200/kW for microturbines generating less than 2 MW for on-site generation (§ 1336).

Read more:

from Think Insulation & Internal Revenue Service:
IRS releases commercial building guidelines for 2005 Energy Act

(WASHINGTON, DC and SHELBYVILLE, Ind., June 5, 2006) The Internal Revenue Service today released more detailed guidance for commercial building owners on qualifying for energy efficiency tax credits under the Energy Act of 2005. Knauf Insulation supports these incentives as a way to encourage energy conservation and operational savings: Insulation already installed in U.S. commercial buildings saves $10 billion in energy costs every year - it’s estimated that if U.S. businesses could cut another 10% from operating costs through energy efficiency, it would free an additional $10 billion annually for other economic activity.

Commercial buildings qualify for a $1.80 per square foot tax deduction for energy efficiency improvements under the Energy Act. Documentation released today specifies that these improvements must involve the building’s envelope, HVAC, hot water and interior lighting systems and lead to a 50% energy efficiency improvement over ASHRAE Standard 90.1-2001. This would include duct and other insulation additions and enhancements. If energy efficiency improvements do not meet the 50% target, building owners may still qualify for a $.60 per square foot deduction by meeting a 16 2/3% energy savings target.

Full details on the commercial tax credit guidelines can be found at

Read more:

Infrared building envelope analysis is the only proven, nondestructive and complete method for troubleshooting building heat loss and moisture problems. Building owners use envelope testing to save millions of dollars every year by reducing energy costs, minimizing structural damage, and enhancing occupant comfort and health. An Infra-red Analyzers heat loss survey can help you:

Client testimonial
• Pinpoint missing, damaged or wet insulation
• Locate causes of frozen pipes and ice dams
• Prioritize and document heat loss problems
• Identify sources of air and water infiltration
• Detect conditions likely to support growth of mold and mildew
• Reduce heating and cooling costs
• Increase energy efficiency and boost profits

Heat losses from buildings are accelerated by structural problems, poor construction practices, missing or inadequate insulation, moisture infiltration and air leakage. Escaping heat creates a thermal signature that can be detected with infrared thermography. Building envelope analysis pinpoints underlying problems in the physical plant. From this data we produce a comprehensive report to provide the building owner with detailed information about the locations, causes and extent of problems in the building envelope.

Our Certified Thermographers use cutting-edge infrared detection technology to rapidly and accurately identify hidden problems that waste your energy dollars and threaten the integrity of your building. At most facilities, data collection can be completed in just one or two days, without disrupting your operations.

Serving the Special Needs of Your Industry:
Whether you're troubleshooting an emergency or enhancing the safety and reliability of mission critical systems, Infra-red Analyzers is ready to provide the professional inspection and analysis you need. More
From day care centers to colleges and universities, we've helped hundreds of educational institutions cut costs and improve the safety, comfort, and efficiency of their facilities. More
Our certified technicians and analysts help you develop a thorough understanding of the built environment to provide your clients with the best possible build and repair solutions. More

Our team has extensive training in the safe, professional testing of power generation and utility equipment to provide the independent testing and analysis you need. More
Infra-red Analyzers works closely with roofing contractors to provide professional testing and analysis for a thorough understanding of the roofing system's condition. More
Our vector mapping technicians can help you troubleshoot the toughest waterproofing problems in virtually any application with high or low voltage leak detection technology. More

US Green Building Council
Committed to Energy Efficiency and Green Building
We're proud to belong to the U.S. Green Building Council®. USGBC® is a 501(c)(3) non profit composed of leaders from every sector of the building industry working to promote buildings and communities that are environmentally responsible, profitable and healthy places to live and work.
More about green building...
Testimonials from Our Clients
Nashua Worcester New Haven New York Burlington
Call Toll Free: 800-879-1964
Established 1984
USGBC and related logo is a trademark owned by the U.S. Green Building Council and is used with permission. All other content copyright © 2003 - 2012 Infra-red Analyzers, Inc.