IRS Tax Credits for Handi-Foam and Handi-Seal Polyurethane Sealants

The Energy Policy Act of 2005 provides for specific tax credits tied to the use of certain energy efficient home improvements. These tax credits are in effect from January 1, 2006 through December 31, 2007:

Homeowner Tax Credit for Insulation Home Improvements. Tax credits are available to existing homeowners for many types of home improvements including adding insulation, replacement windows, and certain high efficiency heating and cooling equipment. The final rules and forms to clarify which products and services qualify for the tax credits will be developed by The Internal Revenue Service (IRS), and, in the meantime, the IRS has provided guidance for consumers, which can be found in the following notice:
IRS Notice for Home Improvement Tax Credits 2006-26

The purpose of this Technical Bulletin is to certify that Handi-Foam and Handi-Seal Polyurethane Foam products used as insulation and sealing materials qualify for the tax credit as an "Eligible Building Envelope Component" under section §25C of the Internal Revenue Code.

Business Tax Credit for New Homes. The tax credit for the construction of new energy efficient homes is $2,000 per home, if the builder achieves a 50% reduction in projected energy use as compared to the 2004 International Energy Conservation Code with supplements. These tax credits apply to new homes located in the United States whose construction is substantially completed after August 8, 2005 and that are acquired from the eligible contractor after December 31, 2005 and before January 1, 2008, for use as a residence.

Business Tax Credit for Commercial Improvements. The law permits an immediate tax deduction (versus Depreciation) for energy efficient commercial buildings meeting a 50% energy reduction. The deduction, generally $1.80 per square foot, but $0.60 per square foot in some cases, is effective for property placed in service between 2006-2007.

Additional information about this program can be found on the EPA's Energy Star® web site;
http://www.energystar.gov/index.cfm?c=products.pr_tax_credits#1

This information is provided as a service and is not necessarily meant to reflect any recommendation, guideline or position of Fomo Products, Inc.  Each individual user must determine product suitability for any particular purpose.