02.21.2006 - IRS releases guidelines for 2005 Energy Act
02/21/2006
NEWS RELEASE
Contact
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Chris Watts, MARC USA/Indianapolis Public
Relations
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Phone: 317.638.9158
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Fax: 317.632.0078
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OR
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Mike Lynam, Knauf Insulation
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Phone: 800.825.4434
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Fax: 317.398.3675
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IRS releases
guidelines for 2005 Energy Act
Tax credits for new home insulation, adding
insulation
to existing homes explained
(WASHINGTON, DC and
SHELBYVILLE, Ind., February 21, 2006) The U.S. Treasury
Department and Internal Revenue Service today released more
detailed guidance for homeowners and builders on qualifying for
energy efficiency tax credits within the Energy Act of 2005.
According to Knauf Insulation, these incentives provide additional
incentive for homeowners and builders to insulate to optimum
levels, leading to more valuable and sustainable homes and
long-term savings on utility costs.
For homeowners, the Energy Act provides a 10% tax credit for
qualified energy efficiency improvements, including
insulation. The maximum credit is $500 for the cumulative
purchase of such components during 2006 and 2007; the credit can be
applied towards the cost of materials, but not installation, and
homeowners must keep appropriate records as proof of
purchase. The full guidelines can be viewed at
http://www.irs.gov/pub/irs-drop/n-06-26.pdf.
Homebuilders may receive a tax credit up to $2000 for
energy-efficient new homes, occupied by their owners after December
31, 2005 and before January 1, 2008. To meet the energy
saving requirements, a home must be certified to provide a level of
heating and cooling energy consumption that is 50% below the
standards of the 2004 Supplement to the 2003 International Energy
Conservation Code (30% or more for manufactured homes). It
must also have building envelope component improvements providing a
level of heating and cooling energy consumption that is at least 10
percent below that of a comparable home. Full guidelines for
homebuilders are available at
http://www.irs.gov/pub/irs-drop/n-06-27.pdf.
No additional detail has yet been released for commercial
buildings, which qualify for a $1.80 per square foot tax deduction
for energy efficiency improvements under the Act.
“We’re very supportive of the Energy Act of 2005 and are
pleased to see it being implemented,” said Robert Claxton, Knauf’s
President. “We agree with the Department of Energy that
adding insulation to a home is one of the fastest and most
cost-efficient ways to make an impact on energy savings – and now,
the best way to realize these additional tax benefits as
well.
“Fiber glass insulation provides the maximum R-value available
for standard wood-frame construction; we’re proud of the role our
products play in making U.S. homes more energy efficient.”
Knauf Insulation recently launched a new educational
initiative, Thinksulation, designed to educate homeowners,
homebuyers and the construction industry on insulation’s role in
sustainable construction, including energy conservation. More
details on this and the 2005 Energy Act are available at
http://www.thinksulation.com/.
About Knauf and Thinksulation. Knauf
Insulation is a leading global manufacturer of thermal and
acoustical insulations for residential, commercial, industrial, OEM
and metal building applications. Knauf Insulation recently
launched “Thinksulation,” an initiative geared towards educating
the public and helping the construction industry promote energy
efficiency and the environmental benefits of fiber glass
insulation. For more information about Thinksulation, visit
http://www.thinksulation.com/;
for more on Knauf sales and products, visit
http://www.knaufusa.com/, write to
Knauf Insulation, One Knauf Drive, Shelbyville, IN 46176 or
call 800-825-4434.
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