06.05.06 IRS releases commercial building guidelines

06/05/2006

NEWS RELEASE

Contact

Chris Watts, MARC USA/Indianapolis Public Relations
Phone:  317.638.9158
Fax:  317.632.0078
 
OR
 
Mike Lynam, Knauf Insulation
Phone:  800.825.4434
Fax:  317.398.3675
 

IRS releases commercial building guidelines for 2005 Energy Act
(WASHINGTON, DC and SHELBYVILLE, Ind., June 5, 2006)  The Internal Revenue Service today released more detailed guidance for commercial building owners on qualifying for energy efficiency tax credits under the Energy Act of 2005.  Knauf Insulation supports these incentives as a way to encourage energy conservation and operational savings: Insulation already installed in U.S. commercial buildings saves $10 billion in energy costs every year - it’s estimated that if U.S. businesses could cut another 10% from operating costs through energy efficiency, it would free an additional $10 billion annually for other economic activity.

 

Commercial buildings qualify for a $1.80 per square foot tax deduction for energy efficiency improvements under the Energy Act.  Documentation released today specifies that these improvements must involve the building’s envelope, HVAC, hot water and interior lighting systems and lead to a 50% energy efficiency improvement over ASHRAE Standard 90.1-2001.  This would include duct and other insulation additions and enhancements.  If energy efficiency improvements do not meet the 50% target, building owners may still qualify for a $.60 per square foot deduction by meeting a 16 2/3% energy savings target.

 

Full details on the commercial tax credit guidelines can be found at www.irs.gov/pub/irs-drop/n-06-52.pdf.

 

The Energy Policy Act of 2005 also provides tax credits for homeowners and homebuilders for energy efficiency improvements, including insulation upgrades.  Together, these incentives support the drive for energy conservation, to cut greenhouse gas emissions and reduce the nation’s dependence on fossil fuels.  Insulation contributes to all of these goals: Insulation currently installed in U.S. homes and buildings saves more than 42 quadrillion BTUs of energy annually, cutting carbon emissions by 780 million tons every year.

 

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 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 www.thinksulation.com; for more on Knauf sales and products, visit www.knaufusa.com, write to Knauf Insulation, One Knauf Drive, Shelbyville, IN  46176 or call 800-825-4434. 

 
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