Retrofit Older Cities Now

Why The Federal Government Should Spend The Funds To Retrofit Older Cities

If we hope to effectively reduce our reliance on fossil fuel, we must make retrofitting older cities a top priority. It is apparent that our reliance on fossil fuel is unsustainable. The oil well blow-out deep in the Gulf of Mexico and the resulting environmental crisis must serve as a bench mark for the radical rethinking of our national energy policy.

BP must be and is being held responsible for cleaning up the spill. Interestingly, for all the bad press that it is experiencing at the moment, I believe that the leadership is doing a good job expressing its commitment to the clean-up. The Obama Administration must seize this golden opportunity to clean-up our energy policy. The Administration is well advised to consider the wisdom of Rahm Emanuel who said, "You never want a serious crisis to go to waste." It will undoubtedly, take years to curve our appetite for fossil but the opportunity is now to start the process of changing heart and minds. This is truly an opportunity to demonstrate great leadership, every man woman and child in this country must believe that energy conservation and clean energy is our only option. Who will have us believe?

The City of Chicago set a goal for the retrofit of 40% of its buildings. The Mayor of Boston has recently proposed to infrared test all the buildings in his city to study energy leakage. The execution of these proposals nationally would clearly have far reaching positive effects on our energy usage and could prove to be a game changer for the future of building performance. Again, it must be noted here that these cities are on the right tract, for any energy policy debate without a strong conservation input is rendered useless.

About 30 years ago as a 18 year old young man I had my first encounter with alternative energy in the form of Solar roof panels. I remembered rushing from my early morning farm duties to take warm showers before class. At nights while studying foe exams, I recalled making delicious hot chocolate straight from the hot water facet. This experience happened at the agricultural boarding school I attended in the tiny island of Jamaica. Why have we not fully develop this alternative energy source? (A topic for another article)

Retrofitting older cities must be a top priority on any energy policy list for it is indeed a low hanging fruit. It is clear, that for the next few decades, energy efficiency is one of the lowest cost options for reducing carbon emissions. Many studies have concluded that energy efficiency can save both energy and money.

Let us begin the process of changing hearts and minds through effective leadership. we could start with a sustained advertising blitz similar to BP current efforts while (cleaning-up) retrofitting the national residential, commercial and government building stock.

Improving the efficiency of buildings, which account for 40 percent of national energy use, is truly a priority for Caledonia Construction. With the $1,500 dollar Federal Tax Credit ending on December 31 2010, now is the time to replace your drafty windows. Caledonia Construction Company, Inc david@caledoniaconstruction.com http://www.caledoniaconstruction.com 617-690-2122 Article Source: http://EzineArticles.com/?expert=David_H_Allen

Buildings Use 40 Percent Of US Energy

Energy Efficiency Starts at Home

Caledonia Construction is the local leader in the supply and installation of energy
efficient replacement windows. “A goal for our company is to make energy efficiency
household words in our market place,”
David Allen, President, Caledonia Construction

For the next few decades, energy efficiency is one of the lowest cost options for
reducing US carbon emissions.
Many studies have concluded that energy efficiency can save both energy and money.
For example, a recent McKinsey report calculated the potential savings assuming a 7%
discount rate, no price on carbon and using only “net present value positive”
investments. It found the potential to reduce consumer demand by about 23% by 2020
and reduce GHG (Green House Gas) emissions by 1.1 gigatons each year – at a net
savings of US $680 billion.
Likewise, the National Academies found in 2009 that accelerated deployment of costeffective
technologies in buildings could reduce energy use by 25-30% in 2030. The
report stated: “Many building efficiency technologies represent attractive investment
opportunities with a payback period of two to three years.”
Steven Chu, U.S., Secretary of Energy

Improving the efficiency of buildings, which account for 40 percent of national energy
use, is truly a priority for Caledonia Construction.
With the $1,500 dollar Federal Tax Credit ending on December 31 2010, now is the
time to replace your drafty windows.
Caledonia Construction Company, Inc
david@caledoniaconstruction.com
www.caledoniaconstruction.com
617-690-2122

Discover How to Use The $1500 Energy Tax Credit

Home Energy-Efficiency Improvement 

How To Use The $1,500 Energy Tax Credit

What is a tax credit? You don't receive an income tax credit when you buy the product, like an instant rebate. You claim the credit on your federal income tax form at the end of the year. The credit then increases the tax refund you receive or decreases the amount you have to pay.

Tax credits vs. tax deductions: In general, a tax credit is more valuable than a similar tax deduction. A tax credit reduces the tax you pay, dollar-for-dollar. Tax deductions - such as those for home mortgages and charitable giving - lower your taxable income. If you are in the highest 35-percent tax bracket, the income tax you pay is reduced by 35 percent of the value of a tax deduction. But a tax credit reduces your federal income tax by 100 percent of the amount of the credit

What do I need to do to get the tax credit? You will need to file IRS Form 5695 with your taxes. In addition, you will need to keep at least receipts proving that you purchased the improvements and a copy of the manufacturer's certification. Accountants and tax advisors should also be able to provide more guidance.

SUMMARY:

1. Keep receipts showing proof of purchase
2. Get a copy of the manufacture's certification
3. File IRS Form 5695 when filing your Federal Tax Return

Please note: We at Caledonia Windows are experts at installing and servicing energy efficiency windows, not taxes, and we do not provide tax advice; you may want to consult a tax professional.

Energy Efficiency Improvement

Home Energy-Efficiency Improvement

Up to Contents

For improvements made in 2009 and 2010, you can get an income tax credit of up to $1,500 for installing efficient new windows, insulation, doors, roofs, and heating and cooling equipment in your home. However, efficiency criteria will vary dependant on when these items are "placed in service" (installed).

Who gets it? Individuals who install specific energy-efficient home improvements.

What energy-efficient home improvements are eligible? The overall $1,500 cap can be reached in several ways with the purchase and installation of energy-efficient products that meet certain efficiency criteria:

• Exterior windows: Includes skylights and storm windows.
• Insulation, exterior doors, or roofs: Includes seals to limit air infiltration, such as caulk, weather stripping, and foam sealants, as well as storm doors.
• Central air conditioner, heat pump, furnace, boiler, water heater, or biomass (e.g. corn) stove: Starting in 2009, geothermal heat pumps are instead eligible for a separate tax credit—see Section 5 below.

Section 6.4 of this document contains the detailed criteria for the products and effective dates (in general only some Energy Star products qualify). Individuals can also search for qualifying heating and cooling products on the Consortium for Energy Efficiency’s web site.

In addition, to be eligible for the federal tax credits:

Windows, doors, insulation, and roofs must be expected to last at least five years (a two-year warranty is sufficient to demonstrate this).

Manufacturers can certify (in packaging or on the company’s web site) which of their products qualify for the tax credit. Retailers, contractors, and manufacturers should be able to help you determine what levels of insulation and what other products qualify.

All the improvements must be installed in or on the taxpayer’s principal residence in the United States. Condo and co-op improvements are apportioned to the owners.

A ‘patch’ to the Alternative Minimum Tax for tax year 2008 and 2009 allows this credit to be claimed by those paying the AMT. It is uncertain if this will be extended to 2010 and beyond.

How much is the credit? The tax credit amount is now 30 percent of the cost of the measures, including installation costs for heating and cooling equipment, but only product costs for windows, insulation, and other parts of the building “shell.” There is a cap on the credit amount of $1,500 for fiscal years 2009 and 2010 combined; thus the credit applies to up to $5,000 in total costs.

When is it available? The home improvements tax credit applies for improvements "placed in service" from January 1, 2009, through December 31, 2010. However, modifications to the criteria were made on products placed in service after February 17, 2009, the date of ARRA passage: products installed through February 16, 2009 are subject to the older criteria, but from February 17th onwards the new stricter Exterior windows and skylights placed in service from January 1 through May 31, 2009 require only existing manufacturer certifications and Energy Star labels, as updates to criteria based on ARRA were not yet available during that timeframe. From June 1, 2009 onwards, the new, more stringent criteria apply. For more information on the June 1 window and skylight issue, see the IRS guidance and press release.

The credits were not available in 2008, but an earlier credit, with different criteria and credit amounts, was available in 2006 and 2007 (credits claimed in these past years do not count toward the $1500 cap).

What do I need to do to get the tax credit? You will need to file IRS Form 5695 with your taxes. In addition, you will need to keep at least receipts proving that you purchased the improvements and a copy of the manufacturer’s certification. Accountants and tax advisors should also be able to provide more guidance.

Guidance for Nonbusiness Energy Property Credit: IRS Notice 2009-53, issued June 1, 2009, provides guidance regarding 'nonbusiness energy property,' superseding previous IRS guidance in light of recent changes to the credits. It also clarifies some regulations related to items eligible for the credit and manufacturers' certification of eligible products. This notice also includes transition rules to provide taxpayers with guidance concerning the interaction of the effective date and timing provisions of the Energy Policy Act, the Energy Improvement and Extension Act, and the American Recovery and Reinvestment Act. The publication of this notice provides specific information that taxpayers and manufacturers can rely upon in claiming the credit or certifying eligible products.

For property placed into service before January 1, 2008, the original IRS guidance applies:

• Notice 2006-26, Credit for Nonbusiness Energy Property
• Notice 2006-53, Clarification of Notice 2006-26

 apply - except for exterior windows and skylights. The IRS defines "placed in service" as when the products or materials are ready and available for use – this would generally refer to the installation, not the purchase