Congress has passed 45L tax credit which allows for $2,000.00 tax credit for building with Thermocore Panels. This is an extension of the Energy Efficient Home credit. Here is the gist of it…..
45L Tax Credit
Recent tax legislation extended the Energy Efficient Home Credit which offers a 45L Tax Credit of $2,000 per dwelling unit to developers of energy efficient apartment buildings and homes.
Eligible 45L Tax Credit Apartment Buildings & Condos:
A dwelling unit should provide a level of heating and cooling energy consumption that is significantly less than certain national energy standards, dependent on when the unit is sold or leased. Based on current construction trends, many developments already exceed these standards. Given that current energy codes have evolved tremendously over the past five years, many developers are already building to specifications that would meet the criteria for this credit. All apartment buildings and residential condominium developments completed within the last 4 years are worth assessing for potential 45L tax credits. Eligible construction also includes substantial reconstruction and rehabilitation. Developers can still claim the 45L tax credit retroactively if they did not claim them on previous tax returns.
Who can benefit?
Apartment, Condominium, and Single-Family Residence Developers.
The Energy Efficient Home Credit offers a tax credit of $2,000 per dwelling unit to developers of energy efficient buildings completed after August 8, 2005. The following types of projects should be considered:
| Affordable housing (LIHTC)
| Apartment buildings
|| Residential condominiums
| Assisted living housing
|| Student housing
| Production home developments
|| Substantial reconstruction
50 qualified units = $100,000 in 45L tax credits
100 qualified units = $200,000 in 45L tax credits
1000 qualified units = $2,000,000 in 45L tax credits
Continuous improvement requires many steps, always moving forward. Over the 16 years that Thermocore Panel Systems has manufactured structural insulated panels, we covered a lot of ground with our steps. Before I tell you about our latest development, let me share a recap of what’s made Thermocore the SIPs innovation leader.
Years ago, we were the first company to introduce pre-cut/pre-bucked structural insulated panels that speed construction. Thermocore also was the first to integrate electrical boxes and conduit in SIPs based on your custom building plan, making the electrician’s job faster and easier. In 2010, Thermocore patented four-inch R-24 insulated wall panels, the highest R-value to work seamlessly with standard 4 9/16-inch window jambs. Thermocore then pushed the insulation envelope further in introducing 8 1/4-inch R-50 insulated roof panels that maximize energy efficiency without adding bulk to roof structures.
But there’s always more ground to cover with SIPs improvements. Thermocore recently incorporated second-generation polyurethane foam from BASF that’s even more environmentally friendly. This innovative insulating foam allows for flatter, more stable wall and roof panels that make construction easier, quicker, and sturdier. Sure, the new foam is a little more expensive in our custom manufacturing process—but you won’t see any price increases. It’s our investment in customer satisfaction, the environment, and continuous SIPs improvement.
We’ll continue working hard to be good stewards of the environment while bringing the best innovations to the building community.
Turns out SIPs not only save money in energy costs, they also help you afford a nicer home! According to an article about financing energy-efficient homes on the U.S. Department of Energy’s website, an energy-efficient mortgage (EEM) can help you qualify for a more expensive home.
How does it work? To verify energy savings, EEM lenders consider the HERS rating from a home energy audit. The smaller the number on your HERS report the better—and homes built with Thermocore structural insulated panels consistently score lower on the HERS index. For instance, Bart Rynish of Barton Designs achieved a HERS rating of 35 with Thermocore SIPs, saving the homeowner hundreds of dollars per year on heating bills.
Lenders figure the less you spend on utility bills, the more you can afford for mortgage payments when you build, remodel, or refinance. Not only will you enjoy the comfortable temperatures, quiet, and sturdiness of your Thermocore SIPs home, you’ll relax in upgraded livings spaces thanks to energy-efficient financing.
Happily, some areas are taking formal steps to increase energy efficiency and ultimately save homeowners money. While some builders struggle to meet the stricter energy codes with the same methods they’ve used for decades, others like Paul Tyrer, owner of Expert Handyman Services, Inc., in Traverse City, Michigan, are willing to try new strategies like SIPs to improve air tightness and lower utility bills.
Paul started with 2 x 6 construction with cellulose insulation blown into the walls. When Michigan adopted the stricter 2012 International Energy Conservation Code (IECC), he looked for a more energy-efficient method.
The 1,400 square foot home built by Paul using Thermocore structural insulated panels tested at 1.98 air changes per hour at 50 Pascals—“much better than the current code requires and twice as good as the [new] code will require,” according to the home’s blower door test report.
Now Paul is building more homes with SIPs so he won’t have to worry about meeting Michigan’s new IECC requirements. And why not! Paul said he can finish construction faster. Plus, “There was no added cost to using Thermocore structural insulated panels,” he said. (Read more about Paul’s experience with structural insulated panels.)
Those who keep doing the same thing get the same results. Don’t wait until you’re required to conserve energy; start saving money now with structural insulated panels.
I recently ran across an article that challenged the old wives’ tale about wearing a hat because you lose most of your heat through your head. The article said, “The head as a body part represents about 10% of the average adult’s total body surface area, so in reality, only 10% of your body’s heat is lost from your head.”
Don’t count on a hat alone to keep you warm on cold winter days!
What does that have to do with structural insulated panels? In the building world, a parallel myth suggests that the most important place to insulate is the attic. Don’t get me wrong—the attic and your head are both important in the warm game. But the attic isn’t nearly as important as your walls in controlling energy costs.
According to a study out of Oak Ridge National Laboratory, “Heating and cooling loads associated with wall areas are the highest among all building envelope systems. That includes attic, doors, and windows.”
If you ask most builders where they’d like to see more insulation in a house, they’ll most likely answer “the attic.” However, just like the head in the body, the attic accounts for only a small portion of the building envelope so it doesn’t make the greatest impact in the energy equation.
Don’t build your home based on old wives’ tales. Modern building envelopes need the most insulation in the walls, with systems like Thermocore SIPs. Insulated attics, like hats, are great. But structural insulated panels give you the warmest coat possible. That’s how you win the warm game.
Congratulations to One 10 Studio in Indianapolis on your five-year anniversary. It has been a pleasure working with you on your innovative projects. Here’s to many more years of sustainable design!
Every day we get calls from folks asking how much it costs to build with Thermocore SIPs. The answer: Much less than what you save on heating and cooling costs over the lifetime of your home or building project.
But in order to provide an accurate number for Thermocore’s customized structural insulated panels, we need to see some sort of building plan with dimensions. Without that, we can give the often-requested “rough ballpark price” for Thermocore SIPs, but it won’t supply the meaningful information you need.
Every journey begins with a map, and the map for your project is the building plan. Once we see your working drawing, we get a clear understanding of what’s involved and can identify any areas of concern. Your price quote will show dollar amounts broken out for structural insulated wall panels, structural insulated roof panels, delivery, and installation, then you choose the options that work best for your design goals and budget.
We never charge for quotes and usually get back to you within a day. All you need to provide is:
- Wall heights
- Roof plan
We don’t need window and door sizes or other interior details. Even the roughest sketch with dimensions marked will save you time and provide the specific information you need for an accurate SIPs cost analysis.
I’ve got a simple equation, even for those who hate math. Here’s the story: David Watters, owner of The Beamery, designed a 4,000 square-foot, two-level home in Nashville, Indiana. Built to Passive House standards with Thermocore insulated wall and roof panels, the home uses an 18,000 BTU heat pump as its only heating and cooling source. Throughout last summer, indoor temperatures stayed between 68 and 72 degrees.
First let me ask: How warm did your home get last summer? And how much air conditioning did that require?
Now let’s do the math on the home David designed. First the homeowners saved on initial costs. No expensive air conditioner. No furnace. Just a very small heat pump. That’s because structural insulated panels don’t need much help to keep indoor temperatures comfortable. Think of it as SIPs doing the heavy lifting so the heating and cooling system can sit back and relax.
Now let’s add in ongoing savings. Running an 18,000 BTU heat pump costs significantly less than a typical heating and cooling system—each and every month.
Bottom line, SIPs result in exponential savings. Read more about David’s Passive House and the press coverage it received. Then consider how much your savings could multiply with SIPs.
The Federal Government just put forth another round of global warming information. Did you read it? Do you care? Most people say they do care. Unfortunately, most people’s actions say they don’t care.
We now live in a world where it’s possible to get 40 miles per gallon in our cars and consume 1/3 less energy in our buildings. But both options take an upfront investment—something most people aren’t doing, despite the long-term savings.
No one says they want their children to inherit a world that’s warmer and more polluted. However, without action, the experts agree that’s where we’re headed. If that does become the future, how will later generations view us? We recognize the problem but are unwilling to take steps to correct it.
I’m much better at asking questions (the easy part) than providing answers (the hard part)—until it comes to building. Structural insulated panels are a significant answer to much of the global warming process. Surely too bold a statement. Until you consider this:
- SIPs use OSB instead of studs for structure, meaning up to 35% less lumber with SIPs vs. stick framing. Leave the trees in the ground where they do the most good at protecting the Earth and our future!
- Buildings with structural insulated panels use less energy than stick-framed structures. Period. No debate. More SIPs equals less energy used.
Structural insulated panels can and will reduce global warming…as long as you choose to build with them.
A friend recently told me a story about helping his son buy a car. His son had little money or credit history and thought the best way to get a loan would be through his dad. My friend agreed to loan his son the money for a three-year term, and figured that buying a cheap car would make it easier for his son to pay him back. The car lasted one year.
That put them back in the same situation, buying another car. This time my friend approached the purchase much differently. He viewed the car as an investment, rather than something to just spend money on. In the tradition of “you get what you pay for,” he’d learned that value is not determined in one day of shopping, but rather over the life of the product.
The same principle applies when comparing structural insulated panels like Thermocore to conventional stick-frame construction. One is just “spending money” while the other provides an investment with a clear payback in energy cost savings. Those who invest wisely in life always seem to come out ahead. When you build a new home, think about ways to invest—rather than just spend—your money.