Understanding the Affects of Tax Credits on the Spray Foam Industry

Arlington, TX (2009) – There’s been a lot of information going around about what’s going on with the Economic Stimulus Plan and the Tax Credits that have been recently signed into law. And most importantly how they affect the spray foam industry. After sifting through the information, DEMILEC (USA) LLC® was able to come up with FOUR different tax credits that aren’t necessarily all new, but worth knowing about when out there in the marketplace.

Home Improvement Tax Credit:

This tax credit is available for consumers who are improving the conditions of their principle residence. In order to qualify for the tax credit a home owner must have the improvements placed in service between January 1, 2009 and December 31, 2010. For insulation the homeowner can qualify for 30% of cost, up to $1,500. You can find a full matrix of potential tax credits at http://www.energystar.gov/index.cfm?c=products.pr_tax_credits#s1.

Don’t forget this is a TAX CREDIT, which has bigger implications for an individual’s tax bill relative to a tax deduction. Also, a home owner will be required to have a copy of the manufactures certification statement on hand at the end of the year. This can be found at http://www.demilecusa.com/Repository/File/Manufacturers_Certification_Statement_022509.pdf.

Tax Credit for Home Builders:
This tax credit has not changed except, it has been extended through December 31,2009. This credit still requires a home to achieve 50% energy savings for heating and cooling over the 2004 IECC.

You can find additional information including needed paperwork at http://www.energystar.gov/index.cfm?c=products.pr_tax_credits#s6.

Tax Deduction for Commercial Buildings:
This tax deduction has not changed but has been extended through December 31, 2013. This deduction still allows for $1.80 per square foot if a building achieve 50% energy savings. More information can be found at http://www.energystar.gov/index.cfm?c=products.pr_tax_credits#s8.

First-Time Home Buyer Tax Credit:
This tax credit allows for a first time home buyer to receive a tax credit up to $8,000 if they purchase a principle residence on or after January 1, 2009 and before December 1, 2009. There are restrictions that come into place if a home buyer has a higher income, but more details can be found at http://www.federalhousingtaxcredit.com.