Federal Energy Tax Information

For more detailed information on the 2009 & 2010 Federal Tax Credit Programs, please visit www.energystar.gov.

To access or print Fomo Product's Manufacturer Certification Statement, please click here.

Residential Tax Credit Program

The 2009 economic stimulus package, known as The American Recovery and Reinvestment Act (H.R. 1), promises large cost savings for residential and manufactured home builders. 

Tax Credit for Consumers: 
For consumers that are adding insulation to a pre existing home, the federal tax credit for installing insulation is 30% of the total product purchase price. The maximum potential tax credit for 2009 and 2010 is $1500. In order for a job to be applicable for the tax credit, the primary goal of the installed insulation should be to insulate. The product must carry a manufacturer's certification and the insulation must be expected to last for at least 5 years, or carry a 2 year warranty.

Solution: 
Fomo Products, Inc offers an expansive product mix that meets each of the requirements outlined for the above tax credit. Our Handi-Brand products specifically our Handi-Brand Spray Foam systems are most commonly used as insulation, to stop air infiltration, and to seal the building envelope. These foam options help to improve indoor air quality, lower heating and cooling costs, and drastically reduce energy consumption. 

Tax Credit for Home Builders: 
New residential and manufactured home builders are eligible for a $2,000 tax credit. In order to receive the tax credit the newly constructed home must generate 50% energy savings for heating and cooling over the 2004 International Energy Conservation Code (IECC) and supplements or Federal Manufactured Home Construction and Safety Standards.[1] Furthermore, at least 1/5 of the energy savings must come from building envelope improvements.

Solution:
The use of Fomo’s spray foam systems in critical spaces within the home will optimize energy savings by tightening and sealing potential areas where air infiltration occurs. Some of these critical spaces are attics, crawl spaces, rim joists, windows, doors, and wall cavities. By applying foam to these areas, the builder is able to test for noticeable energy savings as well as receive the tax credit for installing insulation and sealing the building envelope

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Commercial Tax Program

The Energy Policy Act of 2005 provides substantial tax deductible benefits for energy efficient building practices in new and retrofit commercial buildings.  

Tax Deduction for Commercial Builders, Building Owners, Building Tennants:
The Federal Commercial Building Tax Deduction can be from $0.60 - $1.80 per square foot of building floor depending upon the percentage of reduction in energy and power costs. There are three categories of projects that the Energy Policy Act of 2005 acknowledges: interior lighting, HVAC/ hot water and building envelope.  

To achieve the maximum $1.80 deduction, energy reduction must be at least 50%. If a building achieves less than 50% but greater than 16?% it may qualify for up to a $0.60 deduction per square foot of building floor. In order to claim the deduction, the taxpayer must obtain a certification that the required energy savings will be achieved. The certification of energy savings must be completed by a qualified individual and contain all supporting documentation outlined in the Energy Policy Act of 2005. The certification is held by the taxpayer and must be made available upon request of an audit.

Solution:
Fomo Products, Inc offers an expansive product mix that can help to meet the reductions in energy outlined above. Our Handi-Brand products specifically our Handi-Foam Spray Foam systems are most commonly used as insulation, to stop air infiltration, and to seal the building envelope. The use of Fomo’s spray foam systems in critical spaces within the building envelope will optimize energy savings by tightening and sealing potential areas where air infiltration occurs. These foam options help to improve indoor air quality, lower heating and cooling costs, and drastically reduce energy consumption.

For further information please click here.