Going Green, and gaining Green back in your pocket

Tax Credits for the Homeowner

The federal government and the IRS have also extended tax credits to homeowners who install cool metal roofing on their homes in 2009 and 2010.  Tax credits that were part of the Energy Policy Act of 2005 gave homeowners who installed an Energy Star labeled cool metal roof a tax credit of 10 percent of the material cost up to $500. The Stimulus Package (more specifically known as the American Recovery and Reinvestment Act of 2009) extends this tax credit through 2010 and increased the maximum amount to 30 percent of the material cost up to $1500 over two years.

In order to file for the tax credit, homeowners need to use IRS Form 5695, and obtain a certificate from their contractor/installer that states that the metal roof being installed complies with the Federal Law and IRS rules (contractors receive this directly from the manufacturer).

Tax Credits for the Contractor

According to the IRS, home builders are eligible for a $2,000 tax credit for a new energy efficient home that achieves 50% energy savings for heating and cooling over the 2004 International Energy Conservation Code (IECC) and supplements. At least 1/5 of the energy savings must come from building envelope improvements.

There is also a $1,000 tax credit to the producer of a new manufactured home achieving 30% energy savings for heating and cooling over the 2004 IECC and supplements (at least 1/3 of the savings must come from building envelope improvements), or a manufactured home meeting the requirements established by EPA under the ENERGY STAR program.

For the owners of commercial buildings, a tax deduction of up to $1.80 per square foot is available if the building is constructed or designed to save at least 50% of the heating and cooling energy of a building that meets ASHRAE Standard 90.1-2001. These tax deductions are available through December 31, 2013 as part of the Stimulus Package.

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