Financial Incentives for ICF Construction

Local, state, and federal authorities and many electric utility companies provide incentives for highly energy efficient construction that can be achieved using Quad-Lock Insulating Concrete Forms. Some of them are listed below for the US and Canada.
 

USA

In this section: Energy Efficient Mortgages | Energy Bill's Tax Incentives | State & Local Programs | Electric Utility Programs
 

Energy Efficient Mortgages for Owners

More and more lenders provide so-called "Energy Efficient Mortgages" (EEM). These mortgages recognize the fact that highly energy efficient homes cost less to operate. This in effect increases a borrower's income - money in your pocket or to qualify for higher mortgage amounts/shorter terms.

Example: How an Energy Efficient Home Pays for Itself and then some

- Borrower finances 100%   of energy improvements - 6.0% 30-year mortgage	Standard Mortgage	EEM
Energy Improvement Costs	-	$6,000
Appraisal Value	$200,000	$206,000
Down Payment	$20,000	$20,000
Mortgage Amount	$180,000	$186,000
P & I	$1,079	$1,115
Monthly Energy Savings	-	$(80)
Total Monthly Payments	$1,079	$1,035

This means that even after you paid for the additional cost of Quad-Lock you're still saving another $44/month, $528/year, and more with rising energy costs...

Major Steps:

1. Pre-qualify with an EEM Lender (e.g. Countrywide Home Loans, Chase Manhattan Mortgage or use the ICFA's list)
2. Evaluation of home's energy efficiency (e.g. inspection by a professional energy rater)
    

Energy Bill's Tax Incentives for Energy Efficient Construction

The recently enacted Energy Bill includes tax incentives to build more energy efficient homes and commercial buildings. Constructing the building envelope with Quad-Lock Insulating Concrete Forms by itself can meet or come close to the requirements for those incentives (depending on climate, chosen R-value, and other factors).

The relevant sections in the "Energy Policy Act of 2005" are Title XIII, Subtitle C: Sections 1332 & 45L (residential) and Sections 1331 & 179D (commercial). Read full text of relevant sections (pdf, 30kB) or the entire Energy Bill. Source: thomas.loc.gov search 'H.R.6' , version ENR, accessed Oct. 7, 2005

For Residential Contractors

What: $2,000 tax credit to eligible contractors for each qualified new energy efficient home

How: View IRS Form 8908 & Instructions and IRS Guidance.
Energy Raters will certify the energy performance based on RESNET approved software: List of RESNET energy raters , RESNET procedures

Requirements: tax credit to eligible contractors for each qualified new energy efficient home

"(1) certified--

(A) to have a level of annual heating and cooling energy consumption which is at least 50 percent below the annual level of heating and cooling energy consumption of a comparable dwelling unit--

(i) which is constructed in accordance with the standards of chapter 4 of the 2003 International Energy Conservation Code, as such Code (including supplements) is in effect on the date of the enactment of this section, and
(ii) for which the heating and cooling equipment efficiencies correspond to the minimum allowed under the regulations established by the Department of Energy pursuant to the National Appliance Energy Conservation Act of 1987 and in effect at the time of completion of construction, and

(B) to have building envelope component improvements account for at least 1/5 of such 50 percent"

For Commercial Owners / Tenants

A one-time tax deduction of up to $1.80 per square foot is available to eligible owners or tenants (or designers, in the case of government-owned buildings) of new or existing commercial buildings designed to reduce the total annual energy and power costs [..] by 50 percent or more in comparison to a reference building which meets the minimum requirements of ASHRAE Standard 90.1-2001.

Partial deductions of up to $0.60 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 50% savings for the entire building.

A mechanical engineer will calculate the energy performance based on ASHRAE 90.1-2001.

These deductions are available for buildings or systems placed in service from January 1, 2006, through December 31, 2007.

For more information view the IRS Instructions & IRS Guidance or visit the Tax Incentive Assistance Project or Commercial Buildings Tax Deduction Coalition
 

State and Local Programs

State and local energy programs provide various rebates, incentives, and credits for energy efficient construction to builders and owners. Since so many programs are available, start by contacting your State Energy Office at the DoE's State Energy Program (SEP) website. Also check Local Residential Green Building Programs (NAHB).
 

Electric Utility Programs

Also contact your local electric utility company to find out about any energy efficiency rebates, incentives and programs the company may offer for builders or owners. The Database of State Incentives for Renewable Energy (DSIRE) is a good starting point.
 

Canada

In this section: Mortgage Loan Insurance Premium Refund | Commercial Building Incentives | Industrial Building Incentives | Provincial, Territorial and Municipal Buildings | Regional Incentives for Commercial and Institutional Buildings
 

Mortgage Loan Insurance Premium Refund

Canada Mortgage and Housing Corporation (CMHC), Canada's national housing agency, offers a 10 percent refund on its mortgage loan insurance premium when a borrower buys or builds an energy-efficient home. To qualify for this refund, the home's energy efficiency must be rated using the EnerGuide for Houses rating system or be R-2000 certified and meet certain minimum requirements. More info...
 

Commercial Building Incentive Program

The Commercial Building Incentive Program (CBIP) provides financial incentives to building owners who incorporate energy efficiency features in the design of new commercial or institutional buildings. You can receive up to $60,000, if your building design meets the program's requirements. Please refer to the Office of Energy Efficiency's website for more information.
 

Industrial Building Incentive Program

The Industrial Building Incentive Program provides incentives to building owners who combine energy-efficient features and processes into the design of new industrial buildings. You can receive up to $80,000 if your building or process design meets the program's requirements. Please refer to the Office of Energy Efficiency's website for more information.
 

Financial Assistance for Provincial, Territorial and Municipal Buildings

Energy-efficient designs of new facilities may qualify for the Commercial Building Incentive Program (see above).

Green Municipal Fund: Municipal governments and their partners can apply for funding for sustainable community planning and infrastructure projects from the Federation of Canadian Municipalities (FCM).
 

Regional Incentives for Commercial and Institutional Buildings

If your building is serviced by specific organizations, you may be able to apply for funds for certain measures. Refer to the Office of Energy Efficiency's website for more information.