Alignment: Bringing resources, tax credits and messages together to catalyze change
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1 Alignment: Bringing resources, tax credits and messages together to catalyze change ACEEE 2007 Market Transformation Symposium Rick Gerardi Director, Residential Programs NYSERDA
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3 EPAct Consumer Tax Incentives: Home Shell: Insulation, Windows, Sealing What is the tax credit for existing homes? credit of up to 10% of the cost. $500 cap per home over two year period, In service from January 1, 2006, through December 31, 2007 What is eligible for the federal tax credits? Eligible measures are: Added insulation to walls, ceilings, or other part of the building envelope. Materials only. Replacement windows and skylights: credit capped at $200. External doors Sealing cracks in the building shell and ducts to reduce infiltration and heat loss. Efficiency levels that qualify for the incentive are specified in the 2001 IECC. What do I need to do to qualify for the incentives? Under the IRS rules, Homeowners should obtain a copy of certification from the manufacturer, installer or retailer. Certifications need not be submitted to the IRS, but should be kept on file in case the IRS has questions.
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5 EPAct New Homes tax credit: to builders In service from Jan.1, 2006, through Dec. 31, Site-built homes: Builders credit of $2000 per home, year that the home is sold. The home must be certified to use at least 50% less energy against 2003 IECC home Building envelope improvements must account for at least 1/5 of the 50% energy savings. 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: DOE guidelines on design and construction techniques for reaching the 50% savings threshold. These should be available soon at U.S. Department of Energy website. 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.
6 Key Provisions of the EXTEND Act New tax credit for home retrofits that save energy. The credit starts at $800 for homes that are certified as saving 20 percent and increases on a sliding scale up to $2,000 for homes that save 50 percent. Owners or renters can qualify for the credit. A new deduction for retrofits of rental homes makes a comparable amount of incentive available to landlords. Extension through 2012 of the tax deduction for energy efficient commercial buildings. Extension through 2011 of tax credits of certain residential energy efficient equipment. Extension of the EPAct tax credit for energy efficiency retrofits to homes to Extension of the EPAct tax credit for energy efficient new homes to A new tax credit for those who perform energy efficiency certifications of buildings. The new tax credit covers costs associated with the training, certification, and purchase of equipment for individuals who perform the certifications needed by taxpayers to qualify for the new and existing homes tax incentives covered by the EXTEND Act.
7 Challenge: Assure a consistent infrastructure for training, certification and messages are in place to promote and implement the tax credits Poor public awareness of tax credits Incompatibility with base ENERGY STAR homes Uneven national standard for work Spotty credible national infrastructure to sign off that the standard has been met Poor participation of builders and contractors
8 Alignment: Assure the infrastructure for training, certification and messages are in place to promote and implement the tax credits Best Practices Identified Standards set Curriculum Developed Training Provided National Workforce Institute For Building Performance Certification of Competency
9 BPI/ RESNET Certification Model for a common national standard BPI/RESNET Certified Comprehensive Building Performance Professional BPI Certified Building Analyst Professional Advanced Building + Energy Modeling Science + (Health a& Safety) RESNET Certified HERS Rater Written Exam for Building Analyst Field Exam for Building Analyst Working through States to establish a comprehensive infrastructure to implement Federal Energy Efficiency Policy HERS Written Exam Rater Modeling Review
10 Challenge: Assure that public benefits relating to promoting deployment of EE are offered in an optimal way for public acceptance New Homes: Federal tax credits: EPAct, EXTEND 50% better than 2003 IECC, heating and cooling Builder Credit, Certifier Credit, Equipment credit ENERGY STAR Homes and marketing 30% better than 2003 IECC, no tie-in to credit National Marketing and HERS infrastructure New York State ENERGY STAR Homes Program Tiered incentives Consumer and Coop marketing Federal Loan Guarantees on EEM s (NYS Pilot) Top 25%, up to 1%interest reduction
11 NYS Alignment: Assure that public benefits relating to promoting deployment of EE are offered in an optimal way for public acceptance New Homes: ENERGY STAR Super Star Pilot (NYS) Standard for designation set above EPAct new homes standard Matches Tier III NYS incentive standard (+ Kwh requirements) Base eligibilty for EEM loan guarantee Current penetration at Tier III 5% (low free riders) New York State ENERGY STAR Homes Program EPAct credit to Builder: mid-stream driver Low-interest Mortgage: consumer driver Consumer and Coop marketing Software outputs for credit documentation for Builder and Bank QC/QA for consumer confidence
12 Challenge: Assure that public benefits relating to promoting deployment of EE are offered in an optimal way for public acceptance Existing Homes: Federal tax credits: EPAct, EXTEND $500 EPAct credit: materials only New EXTEND performance based credit 50%) Certifier Credit, Equipment credit Home Performance with ENERGY STAR Homes and marketing Sparse national presence Some national Marketing and BPI infrastructure New York State Home Performance with ENERGY STAR Program Mid-stream training, certification and performance incentives Consumer and Coop marketing Low-interest loans
13 NYS Alignment: Assure that public benefits relating to promoting deployment of EE are offered in an optimal way for public acceptance Existing Homes: NYS Home Performance with ENERGY STAR Software reconfigured to highlight tax benefits for higher levels of savings Software outputs for credit documentation for consumer and contractor Contractor mid-stream performance incentives aligned with workscope savings levels QC/QA for consumer confidence Systematic tracking of pre-and post usage data (Btu and Kwh) Review of existing HPWE* jobs savings= $1600 federal tax credit
14 Thanks Rick Gerardi
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