Leed on Hilton Head Island- Green Building Contractor - Green Remodeling - LEED for Homes

What is the tax credit for new homes?

A credit of $2000 is available to home builders who build homes (including both site-built and manufactured homes) projected to save at least 50% of the heating and cooling energy of a comparable home that meets the standards of the 2004 International Energy Conservation Code (the 2003 code including the 2004 supplement). A $1000 credit is available to manufactured home producers for models that save 30% or that qualify for the federal Energy Star Homes program.

These credits are available for buildings or systems placed in service from January 1, 2006, through December 31, 2009.

Read an IRS summary of the credit here.

*Update: RESNET has completed a survey of rating providers regarding the number of homes that their raters certified for the federal tax credit (2007 only). 23,702 homes were certified by RESNET during 2007, which is triple the number of homes certified in 2006. For more information, click here.
Who is eligible for the federal tax credit?

These credits go to the builder or producer of the home.
What are the incentives and how do they work?

* Credits are available for homes placed in service (i.e. ready and available for use) from January 1, 2006 through December 31, 2009.
* Site-built homes: Builders can take a credit of $2000 per home, in the year that that the home is sold. The home must be certified to use at least 50% less energy than a comparable home that complies with the standards provided in the 2003 IECC, including 2004 supplement, and uses a SEER 13 air conditioner. Building envelope improvements must account for at least 1/5 of the 50% energy savings.
* Manufactured homes: Producers can take a credit of $2000 per home, in the year that that the home is sold, for meeting the 50% savings criterion. Alternately, they can claim a credit of $1000 for each home that is certified to save 30% or that qualifies for the U.S. EPA Energy Star Homes program.

What goes into a high-efficiency new home?

Homes can qualify for these credits using a wide range of energy efficiency measures. These can include better-insulated foundations, walls, and ceilings; high-efficiency windows; well-sealed framing and air ducts; high-efficiency heating and cooling systems; and other innovative design and construction methods.
What must I do to qualify for the incentive?

* Site-built homes:
o DOE is now preparing guidelines on suggested design and construction techniques for reaching the 50% savings threshold. These should be available soon at U.S. Department of Energy website.
o A presentation at the January 2006 International Builder's Show (270 KB PDF) identifies possible packages for different climate zones.
o IRS guidance specifies that builders obtain certification that a new home qualifies from an independent certifier accredited by the Residential Energy Service Network or an equivalent program. Details can be found on the IRS website.
o EnergyGuage software helps determine compliance.
* Manufactured homes:
o Consult the U.S. EPA website.
o IRS guidance specifies that manufacturers obtain certification that a new home qualifies from an independent certifier accredited with the Residential Energy Service Network or an equivalent program. Details can be found on the IRS website.

Click here to access IRS guidance on qualifying new homes.

Where can I find out more about qualifying homes?

* Site-built homes: www.eere.energy.gov/buildings/building_america
* Manufacturered homes: Energy Star
* Accredited Rating Providers from Residential Energy Services Network (RESNET)
* RESNET: www.natresnet.org
o RESNET Presentation: Procedures for Certifying Residential Energy Efficiency Tax Credits for New Homes (114 KB PDF) *This does not represent any official government or TIAP member positions.
o RESNET Presentation: The New Homes Credit (858 KB PDF)
* IRS Bulletins & Information
o General Information, links to notices
o Accredited Software
o Standards for Calculating Energy Savings

Forms

* IRS Form 8908

Posted in: on Thursday, January 21, 2010 at at 7:12 AM 0 comments    

Businesses can get deductions for new or renovated buildings that save 50% or more of projected annual energy costs for heating, cooling, and lighting compared to model national standards, and partial deductions for efficiency improvements to individual lighting, HVAC and water heating, or envelope systems.
Commercial Vehicles

Credits are available to businesses as for consumers, including heavy-duty hybrid gasoline-electric vehicles. Information on passenger vehicles.
Combined Heat and Power

New! Investment tax credit for combined heat & power systems (CHP)
On-Site Renewables

Businesses are eligible for tax credits for qualified solar water heating and photovoltaic systems, and for certain solar lighting systems.
Fuel Cells & Microturbines

In addition to a fuel cell credit like that for consumers, credits are available to businesses who install qualifying microturbines. These systems, which typically run on natural gas, are small power-producing systems sized to run small to medium size commercial buildings.

Posted in: on at at 7:11 AM 0 comments    

The Worker, Homeownership, and Business Assistance Act of 2009 (signed into law on November 6) gives your small business a potentially valuable tax break if it has a 2009 net operating loss (NOL).

Under the general rule, you can carry a net operating loss (NOL) back for two tax years and deduct it against taxable income in those years. Depending on the NOL’s size, you would then get a refund for some or all of the taxes paid for those earlier years. The new law allows you to do much better, because you can carry back a 2009 NOL for as many as five years (with a twist for that fifth year).

The new extended NOL carryback deal is allowed for large and small businesses alike. However for smaller businesses, the new deal is layered on top of a similar extended NOL carryback deal that was included in the 2009 Stimulus Act. Under the earlier break, you could carry back a 2008 NOL for three, four, or five years, but only if the loss was from a business with average annual gross receipts of $15 million or less.

For example, say your small business had a 2008 NOL. You could elect to carry it back as far as 2003 and recover some or all of the federal income taxes paid for that year. If you still had some NOL left, you could deduct the remaining amount against your 2004 income, then against your 2005 income, and so on until the NOL was fully utilized. And if you still had some 2008 NOL left after the carrybacks, you could carry the leftover amount forward for up to 20 years to offset taxable income in 2009 and later years.

Under the new Worker, Homeownership, and Business Assistance Act of 2009, you can elect to carry back either a 2008 or 2009 NOL for three, four, or five years. If you already took advantage of the earlier Stimulus Act provision to carry back a 2008 NOL for more than two years, the new law allows you to do almost the same thing with a 2009 NOL. The difference: under the new break, an NOL carried back to the fifth preceding year can’t be used to offset more than 50% of that year’s taxable income.

Follow these steps to decide what to do with a 2009 small business NOL:

1. Gather your last three or five years of tax returns.
2. Figure out whether to carry back the NOL for two, three, four, or five years.
3. If you decide to go all the way back to the fifth prior tax year, use the NOL to offset up to 50% of the taxable income for 2004. To claim a tax refund from the NOL carryback, you will generally want to file Form 1139 for a C corporation NOL or Form 1045 for an individual NOL caused by losses from partnerships, S corporations, LLCs, or sole proprietorships. The IRS generally will process these refund claims within 90 days. If you still have some NOL left over, follow the same general procedure for the 2005 tax year. However, you can use the NOL carryback to offset up to 100% of the 2005 taxable income. Continue this same procedure for 2006 and so on until the NOL is all used up.
4. If you chose to carry back the NOL for less than five years, follow the same basic procedures. However in this case, you can use the NOL to offset up to 100% of the taxable income for the earliest year and for each subsequent year in the carryback period.

Your other option is to elect to carry the entire 2009 NOL forward for up to 20 years. This could be the right choice if you expect to pay higher tax rates in future years than you did in the past.

Posted in: on Thursday, January 14, 2010 at at 2:41 PM 0 comments    

Please vote for me...Donna Gilmore.

Chapter Board of Directors Candidates
to fill a 2-year seat

Click the names of each candidate to view their resume.
Click here to review candidates’ answers to application questions.
We appreciate your careful attention to being informed and electing the future leaders of the South Carolina Chapter.

Adam Bernholz
CEO, GreenWizard
Mt Pleasant, SC

Mary Gatch
President, DwellSmart
Mt Pleasant, SC

Donna Gilmore
Executive Director of Business Operations
Sigler Construction, Inc.

Robert Lipscomb
Quality Control Manager
Knight’s Redi-Mix

Posted in: on Monday, November 23, 2009 at at 9:44 AM 0 comments    

Green building isn't just for new construction. If you want to truly separate your eco-conscious remodel from the pack, you can now get it green certified, thanks to a new National Association of Home Builders program.

As "being green" has grown in popularity, it seems that every company in the home improvement industry has jumped on the bandwagon. It's getting difficult to find a product not touted for its eco-value: even green praise for petroleum-based vinyl flooring has been sung, if only for the fact that it lasts a long time.

But now the National Association of Home Builders is providing a way to truly separate the green home remodelers from the brown: you can get your remodel green certified.

Green Remodeling: Certification

The NAHB has expanded its building guidelines to include this new certification standard, which includes remodels, as well as new construction ranging from condos to single-family homes. While certification isn't new--the National Association of the Remodeling Industry offers its own stamp--the NAHB says it's program is unique. It's the only one that has garnered a nod from the American National Standards Institute, which "oversees the creation, promulgation and use of thousands of norms and guidelines that directly impact businesses in nearly every sector."

Certification requires an inspection from an NAHB-trained verifier, who assigns points for water use, indoor air quality and how energy efficient your home is,among other sustainable attributes. Like commercial projects, residences are ranked based on their scores: bronze, silver, gold, and now also emerald, for the best of the best.

As you might suspect, the whole process is far from free. The NAHB charges $200 for certification, and the inspection generally costs between $300 and $700.

So, you might ask, is it worth the extra $1,000?

Possibly. According to a McGraw-Hill Construction survey, one-third of home buyers said they would be willing to pay up to $20,000 more for a "green" home, with the expectation that they would have lower heating and cooling bills, among other savings.

The good news is you don't have to jump into the process blind. You can get a sense of how well your home would rate, thanks to a free online scoring tool. All you have to do is register on the NAHB site.

Posted in: on Wednesday, November 18, 2009 at at 9:15 AM 0 comments    

From Nation's Building News:
Few Subcontractors Aware of the EPA’s New Lead Paint Rule

Few subcontractors associated with home building and remodeling are aware of the U.S. Environmental Protection Agency’s new rule, set to go in effect in April 2010, that will govern remodeling activities in homes and child-occupied facilities built before 1978 that are more likely to contain lead.

During an NAHB meeting at the National Housing Center in Washington, D.C., to discuss concerns about the rule last week, representatives of several remodeling-related trade associations, including insulation and HVAC installers and other subcontractors, told NAHB staff members that many of their members were unaware of the EPA’s new Lead: Renovation, Repair and Painting Rule.

The meeting highlighted the importance of the EPA’s planned public awareness campaign intended to underscore the importance of hiring firms certified to do work in so-called “target housing” — homes built before 1978 and occupied by pregnant women and children under the age of six.

In addition to lack of awareness, NAHB staff members discussed other concerns and problems about the rule that will affect remodelers and subcontractors. These include:

* While the rule is assumed to target only remodelers, it applies to any contractor who “disturbs” at least six square feet of painted surfaces on the inside of a home or 20 square feet on the outside. Contractors who install windows, insulation, home entertainment equipment or similar work in the target housing must become certified to do the work.

* The EPA estimates that 200,000 people will need to be certified by April 22, yet the agency has only approved 97 firms to do the training — a required six hours of class instruction and at least two hours of hands-on training — and the EPA indicates that the hands-on training can only be conducted in groups of six or fewer people. Currently, about 1,200 contractors have completed the training, the EPA estimates.

* While the EPA has hired a public relations and marketing firm to create an awareness campaign for both industry professionals and the public, and the rule set to take effect in five months, the campaign has not been initiated.

* NAHB remodelers have indicated that EPA’s cost estimates for compliance — $35 per job — are woefully low. According to one remodeler’s budgeting worksheet that has been sent to the agency, the added training, materials, testing, cleanup and recordkeeping required under the rule will add between $1,200 and $1,600 per job, not including the additional costs for any subcontractors to comply.

* Even though training is already underway, the EPA has released a proposed amendment to the rule that would add more requirements and costs to comply — and subject the remodeling and renovation of an additional 40 million homes to the rule. In addition, some state environmental offices are considering additional requirements. These developments have left many remodelers uncertain about whether the training the EPA has now approved will be enough to qualify before the certification deadline.


The confusion surrounding the rule and the additional costs for compliance will lead to unintended consequences, said Matt Watkins, NAHB’s environmental policy analyst.

“The more expensive it is to hire a certified remodeler or any kind of contractor to do work on a home, the more likely it is that the home owner will decide instead to make it a do-it-yourself project — and there is no requirement for home owners to use lead-safe work practices,” Watkins said.

“There aren’t enough training options. New proposals continue to surface. The EPA hasn’t made this a priority for public outreach, so the average consumer just thinks it’s an optional added cost, not a necessity. This isn’t the way to keep children from being exposed to lead paint dust,” he added.

Remodelers Urged to Submit Comments to the EPA on Proposed Lead Paint Rule Changes by Nov. 27

NAHB remodelers are urged to submit comments to the EPA by Nov. 27 on the recent proposed changes to lead paint rule.

Members who wish to send comments to the EPA can download and complete a letter template created by NAHB.

For more information on the current rule, including obtaining training and certification, visit www.nahb.org/leadpaint.

Posted in: on Tuesday, November 17, 2009 at at 5:18 PM 0 comments    

The Town of Hilton Head Island's continually strives to be a Green Community, defined herein as a community which strives for:

* Resilient community, including well maintained infrastructure and buildings, sustainable operations, purchasing & reuse, and sustainable facilities;
* Reduced environmental impacts, including solid waste reduction & reduced carbon footprint;
Increased connection to nature;
* Integrated design process, including site design and building construction;
* Reduced resource consumption, including energy, fuel, water and land; and
* High quality of life.

It must be noted that Hilton Head Island became a Green Community long before 'going green' became the latest buzzword. In fact, the Town incorporated in 1983 because the citizens did not like the development being allowed by the County on such an environmentally sensitive barrier island. Development of the Island in the early 1970's stemmed from efforts to create Planned Unit Developments that preserved natural features (trees, waterways, wetlands, wildlife areas, open space), and this technique has been used as a model nationwide.

In November of 2009, the Town of Hilton Head Island released a report outlining Green Initiatives being utilized in Town operations.

Click Here for Report

Posted in: on Monday, November 16, 2009 at at 3:42 PM 0 comments