Dow Finds Common Ground in Efforts to Extend Energy Tax Incentives
What do a chemical company, building industry associations and environmental action groups have in common? Quite a lot, it seems.
Encouraging improved energy efficiency measures in buildings, boosting the economy and reducing taxes. It was that common ground that helped a diverse coalition, in which Dow played a leadership role, to champion preservation of energy efficiency tax incentives included in the U.S. Emergency Economic Stabilization Act of 2008, signed into law on Oct. 3, 2008.
Even before the bill was finalized, Dow, the Alliance to Save Energy, the Manufactured Housing Institute, the National Association of Home Builders, the Natural Resources Defense Council, the Solar Energy Industries Association and Whirlpool Corporation, among other companies and associations, worked closely together to help preserve energy efficiency tax incentives initiated by the U.S. Energy Policy Act of 2005. And while the new legislation was virtually buried in coverage of the presidential election and the global energy and financial crises, it is an exciting development in support of energy efficiency – the “cheapest, cleanest, fastest energy source,” according to the Alliance to Save Energy.
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Highlights of the new legislation include:
- Existing Homes – Homeowner Tax Credit Extended Through 2009
Individual taxpayers can receive up to a $500 lifetime credit for new insulation and other qualified energy efficient improvements in their homes through 2009. Eligible improvements include exterior door or roof expenditures if they meet the 2000 International Energy Conservation Code (IECC) requirements. The incentive also includes seals to limit air infiltration, such as caulk, weather stripping and foam sealants, as well as storm doors/windows. - New Homes – Builder Tax Credit Extended Through 2009
Builders are eligible for a $2,000 tax credit for new energy efficient homes that achieve 50 percent energy savings for heating and cooling over the 2004 International Energy Conservation Code (IECC) and supplements through 2009. At least 20 percent of the energy savings must come from building envelope improvements, such as insulation and weatherization solutions from Dow. New manufactured home producers who achieve 30 percent energy savings for heating and cooling over the 2004 IECC and supplements are also eligible for a $1,000 tax credit. - Commercial Buildings – Tax Deductions Extended Through 2013
Tax deductions up to $1.80 per square foot are available through 2013 to owners or designers of new or existing commercial buildings that save at least 50 percent of the heating and cooling energy of a building that meets ASHRAE Standard 90.1-2001. Partial deductions of up to $.60 per square foot can be taken for measures affecting the building envelope, lighting, or heating and cooling systems. - Solar Credits Extended Through 2016
A number of tax incentives are also designed to encourage both individuals and businesses to invest in solar energy. Among the incentives are eight-year extensions of the 30 percent business and residential solar investment tax credits. The current $2,000 cap on qualified residential solar electric property expenditures will be removed January 1, 2009.
“In financially and environmentally challenging times, the continuation of these U.S. tax incentives achieved through the effective collaboration of a diverse coalition provides strong support for an economic recovery with higher energy efficiency,” said Torsten Kraef, Dow Building Solutions president and general manager. “Dow Building Solutions is proud to have served as a key catalyst in finding common ground on these issues. Striving toward achieving common economic and sustainability goals is a fantastic example of putting the Human Element to work.”
On the recent tax incentive extensions, as well as several other important climate change and energy efficiency concerns, Dow Building Solutions closely partners with the Dow U.S. Federal & State Government Affairs team, which meets regularly with key government stakeholders and public policy influencers at the state and national level to help shape legislation important to our customers. Advocacy and action – two important ways Dow Building Solutions aligns with Dow’s 2015 Sustainability Goals, a public commitment to pursue solutions to climate change, energy conservation and other pressing world challenges.
Learn more about how Dow can help homes and commercial buildings qualify for the tax incentives at www.blue4greendesign.com. Visit the U.S. Department of Energy Tax Breaks Web Page for additional details about the individual incentives.
