The Energy Policy Act of 2005 - Signed into law on August 8, 2005 by Pres. George W. Bush
Impact on Residential Metal Roofing - Cool Metal Roofing
The pertinent text is in Title XIII - Energy Policy Tax Incentives Subtitle C - Conservation and Energy Efficiency Provisions
Section 1332 - Credit for construction of new energy efficient homes
Section 1332 - Credit for certain non business energy property
Section 1332 - New Homes
New section 45 L - "New Energy Efficient Home Credit"
• Three types of dwellings are eligible for this tax credit
- Dwelling unit with annual heating / cooling energy usage reduced by 50% compared to a standard dwelling of same size. Constructed in accordance with the 2003 International Energy Conservation Code (mainly U-values for roof / ceiling insulation in certain regions of the country - no prescriptive roofing TSR /TE properties - at last in the 2000 version)
Where building envelope component improvements account for 1/5 of the 50% reduction in energy usage
- Manufactured home with annual heating / cooling energy usage reduced by 50% compared to standard manufactured home of same size.
• Same construction requirements and limits as in item 1).
- Manufactured home with annual heating / cooling energy usage reduced by 30% compared to standard manufactured home of same size.
• Same construction requirements and limits as in item 1).
Where building envelope component improvements account for 1/3 of the 30% reduction in energy usage
• A tax credit of $2000 available to eligible contractors for type 1). and 2). dwellings
• A tax credit of $1000 available to eligible contractors for type 3). dwelling
• Tax credits are only available for homes acquired between December 31, 2005 and December 31, 2007
• COMMENTARY: Cool metal roofing is not specifically mentioned in this section, but we know that Energy Star labeled roofing can save up to 40% in cooling energy costs. So cool metal roofing can be considered in new construction to help achieve the fraction of the overall heating / cooling energy savings required through the use of energy efficient building envelope components. The tax credit would be a great incentive to contractors to use energy efficient building components.
Section 1333 - Renovated Homes
New section 25 C - Non Business Energy Property
- For homeowners, a tax credit is available equal to the SUM of a). 10% of the amount paid for "qualified energy efficient improvements" and b). the amount of "residential energy property expenditures" paid by the taxpayer (see below) .
° The tax credit for any year "shall not exceed the excess of $500 over the aggregate credits . . .for all prior taxable years."
- "Qualified energy efficient improvements" are defined as: Any energy efficient building envelope component which meets the prescriptive criteria for such component established by the 2000 IECC (or in the case of a metal roof with appropriate pigmented coatings which meet the Energy Star Program requirements).
- "Residential energy property expenditures" are defined and limited to: $50 for advanced main air circulation fans, $150 for any qualified natural gas, propane, or oil furnace or hot water boiler, $300 for any item of energy efficient building property.
- "Building envelope component" is defined as: Insulation . . . Exterior windows . . . Exterior doors.
Any metal roof installed on a dwelling unit, but only if such roof has appropriate pigmented coatings which are specifically and primarily designed to reduce the heat gain of such dwelling unit.
- Applies to property placed in service after December 31, 2005 and up to December 31, 2007.
- COMMENTARY: This is very significant for metal roofing and cool metal roofing in particular. Metal roofing with heat reflective pigments was specifically and exclusively imbedded in the new law. No other roofing material is mentioned or accepted as a means of energy savings. This tax credit represents for all who sell and install metal roofing an added benefit for their customers.
|
