INSULATION A typical home not only loses energy through leaky ducts and windows but also through gaps in insulation in attics, floors, and walls. In addition, more energy can be lost due to the inefficiency of an insulation material itself. Once you’ve sealed air leaks throughout your home or building, it makes sense to improve insulation. Insulation’s R-value is a measure of its resistance to heat flow. The higher the R-value, the more efficient the insulation. Your attic should be insulated to a minimum R-value of R-38, R-21 in the knee walls. Walls in heated areas of the home should be insulated to at least R-13 and those in unheated areas should be at R-21. Floors and crawl spaces should be insulated to least R-25. Seal and then insulate ducts to achieve at least R-8 and insulate water pipes to R-3. R-values are important since there are often minimum R-value requirements to qualify for many energy efficiency tax credits and incentives. Visit the U.S. Department of Energy website for more information about how to determine your home’s R-values and your potential savings at: Navigate124.notlong.com. You need to be aware of your home’s current R-values before you begin any improvements since the amount of improvement up to the R-values listed above will affect the weatherization tax credit and incentive amounts for which you may qualify. Be sure to read about any program(s) for which you plan to apply before making any improvements so that you can be sure to qualify by meeting all necessary requirements. In addition to the following programs, be sure to check the local utility tables on pages 26-27.
Federal Energy Efficient Commercial Buildings Tax Deduction Building insulation projects qualify for this corporate tax deduction. The deduction amount can be up to $1.80 per square foot when you install systems that reduce the building’s total energy and power cost by 50% or more in comparison to a building meeting minimum requirements set by ASHRAE Standard 90.12001. Energy savings must be calculated using qualified computer software approved by the IRS.
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Federal Residential Energy Efficiency Tax Credit Building insulation is one of several types of projects that can qualify for this personal tax credit. The credit is for 30% of the cost of your project, and, if you take this credit for other eligible projects, the maximum credit allowed for all projects combined is $1,500.
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Download IRS Form 5695 at this address: Navigate1.notlong.com. 6
Oregon Business Energy Tax Credit (BETC) Building insulation qualifies for the BETC. Your insulation retrofit must make your system either 10% more efficient than your old system or, if in a new building, reduce energy use by at least 10% compared to a similar building. For these kinds of upgrades, the BETC tax credit is 35% of the incremental additional costs of making the project exceed energy code or standard industry practice. New construction projects must have a basic payback of 1 to 15 years. Be sure to review the full BETC program listing on page 12 for details on a pass-through option.
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ENERG Y | c o n s e r vat i o n : i n s ul at i o n
Incentives
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