Building Green with SIPs
While energy costs continue to rise and “green” building practices become more attainable, SIPs are the next and best choice to incorporate into your next construction project. Learn the environmental and energy efficient benefits of using SIPs in any project.
Conserve Natural Resources
Our SIPS are manufactured with the environment in mind.
- OSB (Oriented Strand Board) - The OSB used in the exterior SIP skins is produced from small plantation grown trees specifically harvested for sustainable OSB production. The production process is also highly automated so the finished yield is very high. Since SIPs production is more effecient that sawn lumber, a SIPs home uses less forest yield that a traditional stick framed home. FSC certified OSB is available upon request.
- Insulating Foam - The EPS (expanded polystyrene) that is used between the two OSB skins in manufactured using heat and steam and contains no chlorofluororcarbons (CFCs), hydrochlorofluorocarbons (HCFCs) or formaldehyde and is 100% recyclable. Our SIPs foam cores are made of mostly air and very little petroleum and on average save nineteen times the energy involved in foam production in the first year.
- Manufacturing Adhesives - The Manufacturing Adhesives used to bond SIPs are urethanes.
Energy Conservation
Because SIPs have a superior R-Value foam core that uses no thermal bridging studs and has no areas of compression or insulation voids, a SIPs home is extremely energy efficient. When compared against other high efficiency homes, SIPs homes show 40%-60% savings over the average in both hot and cold climates. Also since a SIPs home has fewer gaps to seal, SIPs homes have very low levels of air infiltration promoting better indoor air quality and quality of life.
Less Jobsite Waste
SIPs panels are delivered pre-cut and ready to install right to the jobsite. Since there is no need to cut, frame or trim the excessive amounts of lumber there is no need to waste material. Our panels are cut specialty to reduce the amount of waste not only in the construction process but in the panel's manufacturing. SIPs are cut to minimize the excess scrap and all left over materials are recycled. Jobsite waste can also be returned to be recycled.
Increased Air Quality
The insulating properties of SIPs allow for a tight insulation with fewer gaps for energy and unhealthy airborne substances to pass through. Using and mechanical ventilation system and air conditioning, indoor air can effectively be filtered and dehumidified in a building with low air infiltration (Like a SIPs home). Most indoor air contaminates, including mold and dust mites, are not found in a properly dehumidified home.
Tax Credits
History
In 2005, President George Bush signed the United States Energy Policy Act. This legislation gives financial incentives to residential contractors and commercial building owners that build energy efficient homes and buildings. By using energy efficient building materials such as structural insulated panels (SIPs), builders and contractors can qualify for a $2000 tax credit on residential homes or up to a $1.80 per square foot tax deduction on commercial buildings.
Provisions
Homebuilders are eligible for a $2,000 tax credit for a new energy efficient home that achieves fifty percent energy savings for heating and cooling over the 2003 International Energy Conservation Code (IECC) plus 2004 supplements. At least one fifth of the energy savings must come from building envelope improvement, achieved through higher levels of insulation and air sealing. A SIP building envelope delivers high R-value insulation while reducing air leakage, making SIPs an ideal option for meeting this requirement.
A tax deduction of up to $1.80 per square foot is available to owners (or designers, in the case of government-owned buildings) of new or existing commercial buildings. To qualify owners must demonstration that the building was constructed or reconstructed to save at least 50% of the heating, cooling, water heating, and interior lighting energy cost that meet ASHRAE Standard 90.1-2001. Partial deductions of up to $.60 per square foot can be taken for comparable reductions from any one of three building systems the building envelope, lighting, or heating and cooling system that meets goals consistent with achieving the fifty percent savings for the entire building.
Tax Credit vs Tax Deduction
Tax credits, as compared to tax deductions, directly reduce the amount of income tax owed. Tax deductions reduce the amount of income subject to tax.
How to Qualify and Apply Home Tax Credit
To receive the $2000 tax credit for homes, the builder must follow the guidelines set out in IRS Notice 2006-27. To do so, the home must undergo an inspection from an energy rater certified through the Residential Energy Services Network (RESNET). To find a RESNET energy rater in your area visit the RESNET web site.
The Internal Revenue Service has created IRS Form 8908 to guide contractors through applying for the tax credit.
Additional environmental tax credits and deductions vary by region throughout the United States. Visit dsireusa.org for additional regional information about tax incentives in your area.
How to Qualify and Apply for Commercial Tax Deduction
Owners and Leaseholders of commercial buildings must follow the procedures listed in IRS Notice 2006-52. Additional information about this IRS notice can be found in an article on the IRS's web site.
This notification provides guidance for full and partial deductions on new commercial construction and renovation. Since the financial incentive is a tax deduction, the Internal Revenue Service will continue to use standard forms to apply it to your taxes each year. Please consult a tax professional to learn how you can maximize your deduction.
Partial Deductions
In the case of a building that does not meet the whole building requirement of a 50 percent energy savings, a partial deduction is allowed for each separate building system that is certified by a qualified professional as meeting or exceeding the applicable system savings targets of the $1.80 per square foot commercial tax credits. The applicable system savings targets are those that would result in a total annual energy savings of fifty percent for the whole building, if each of the separate systems met the system target; note that the maximum allowable deduction is $0.60 per square foot. The separate building systems are:
- Interior lighting system
- Heating, cooling, ventilation, and hot water systems
- Building envelope
For more information on partial deductions, consult IRS Notice 2006-52.