Bauer Specialty Insulation & Gutters

New Stimulus Bill Offers Great Incentive to Insulate Now

TAX CREDITS FOR ENERGY SAVINGS!  

On February 17, 2009, President Obama signed a stimulus bill (The American Recovery and Reinvestment Act of 2009) that made some significant changes to the energy efficiency tax credits.

Click here to view the details of the energy efficient tax credits for homeowners.  Tax Credit Summary

 

The new American Recovery and Reinvestment Act of 2009 includes great benefits for homeowners to improve the energy efficiency of their primary residence. The expanded tax credits are a huge incentive because tax credits lower your tax liability directly.  For example if your federal tax bill totaled $3,000 a tax credit will reduce that amount directly.  Deductions only save you the percentage of the tax bracket you're in.  

Just as a solid foundation is vital to building a house that will last insulation and air sealing are critical in creating an energy efficient building.  Quality HVAC technicians consider the shell of the home in order to properly size heating and cooling equipment.  Those who don't often oversize and cause other problems in which mechanicals short cycle resulting in energy loss, lack of proper dehumidification and ineeficent operation.  This wastes energy and can shorten the life expectancy of the unit.  

A properly insulated home with a tight envelope will retain the energy you spend to create a comfortable environment.  This coupled with conservation techniques and proper equipment will set you on the path for true energy savings.  

 Here's a recap of the main energy tax credits applicable to homeowners from the U.S. Department of Energy's (DOE) Office of Energy Efficiency and Renewable Energy (EERE)

"Economic Stimulus Act Extends Renewable Energy Tax Credits

The tax section of the American Recovery and Reinvestment Act of 2009 provides a three-year extension of the production tax credit (PTC) for most renewable energy facilities, while offering expansions on and alternatives for tax credits on renewable energy systems. The extension keeps the wind energy PTC in effect through 2012, while keeping the PTC alive for municipal solid waste, qualified hydropower, and biomass and geothermal energy facilities through 2013. In addition, a two-year extension of the PTC for marine and hydrokinetic renewable energy systems will keep that tax credit in effect through 2013. The PTC provides a credit for every kilowatt-hour produced at new qualified facilities during the first 10 years of operation, provided the facilities are placed in service before the tax credit's expiration date. For 2008, biomass facilities fueled with dedicated energy crops ("closed-loop biomass"), as well as wind, solar, and geothermal energy facilities earned 2.1 cents per kilowatt-hour, while other qualified facilities earned 1 cent per kilowatt-hour."

See pages 33-34 of theAmerican Recovery and Reinvestment Tax Act of 2009 (PDF 5.9 MB) of the actual bill.  

 

 

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Why Would You Want Insulation? PDF Print E-mail

1. Save Energy = Save Money

Insulation is an investment, literally, with a rate of return. It pays for itself with the dollars it saves.

Simple Payback is how many years it will take for the annual savings to equal the initial investment. The shorter the payback, the more cost effective the measure. 

  • Simple Payback = Cost of Improvement / Annual Savings

Rate of Return is equivalent to earning interest on money you've put into an account or investment.

  • Rate of Return = Annual Savings / Cost of Improvement

Savings to Investment Ratio answers the question, "For every dollar I invest today, how many dollars will I save if I install the measure?" An SIR greater than 1 indicates the investment returns more than it costs. An SIR of 2.22 means the measure returns over two dollars for every dollar invested (in present day dollars).

  • SIR = (Annual Savings x Life Cycle of Measure) / Cost of Improvement

Simple Payback is how many years it will take for the annual savings to equal the initial investment. The shorter the payback, the more cost effective the measure. 

  • Simple Payback = Cost of Improvement / Annual Savings

 

Rate of Return is equivalent to earning interest on money you've put into an account or investment.

  • Rate of Return = Annual Savings / Cost of Improvement

 

Savings to Investment Ratio answers the question, "For every dollar I invest today, how many dollars will I save if I install the measure?" An SIR greater than 1 indicates the investment returns more than it costs. An SIR of 2.22 means the measure returns over two dollars for every dollar invested (in present day dollars).

  • SIR = (Annual Savings x Life Cycle of Measure) / Cost of Improvement

 

2. Year Round Comfort

Properly installed insulation helps keep your home at the temperature you want. By slowing the transfer of heat through your walls and attic it will keep you cool in the summer and warm in the winter. Air sealing stops drafts which are the major cause of discomfort in the winter. Foam products are typically best because they insulate very well and eliminate drafts at the same time.

 

3. Health & Safety Concerns

Contaminants from both the interior and exterior affect your Indoor Air Quality (IAQ).

Examples: Moisture, mold, dust, carbon monoxide, mildew, pollen. The trouble with these is that all can be carried on air currents. We detail these items to reduce or eliminate the problems they can cause:

  • Bathroom vents properly exhausted
  • Kitchen vents properly exhausted
  • Air seal pathways through the building interior and exterior
  • Address sources of bulk water

 

4. Maintenance Prevention

There are some serious problems that a quality insulation job can protect you from. Most stem from water in it's various states.

  • Ice Damming
  • Water Stained Ceilings and Walls
  • Mold and Mildew
  • Rotted Structure
  • Leaky Roof
  • Insect Deterrant

 

5. Improved Resale

When home buyers get serious about making an offer their top two questions for realtors are:

 What are the taxes?        How high are the utility bills?

Home energy efficiency impacts a home's value. In a study funded by the Federal Government (EPA and Dept of Housing and Urban Development) through ICF Consult­ing Group they determined that for every $1 reduction in annual fuel bills the value of the home increased $10 to $25.

 

6. Helping the Environment

"Home energy use accounts for nearly 17% of the total U.S. greenhouse gas emissions and 21% of energy consumption nationwide, the feds say." More Planet-Saving Homes Available by Broderick Perkins

By reducing the energy usage in your home - both gas and electric - you are helping reduce pollution and conserve fuel supplies. The electricity you consume is primarily generated from burning coal and natural gas to power steam turbines. So when you conserve electricity you're also conserving natural gas and coal.

 
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