Energy Efficient Tax Deduction Comes Back to Life

Last evening the Senate overwhelmingly passed the Tax Extenders Bill (HR.5771) which extends all expired tax provisions retroactively from 12/31/2013 through the end of 2014. The bill will now move onto the President to be formally signed into law. Presidential veto is not expected on the one year package.

Why should I care?

You should care if you are the owner, builder or designer of a commcercial or public building put into service in 2014.

It means a Federal 179D Tax Deduction of up to $1.80 per square foot will be available for all qualifying buildings. If your building’s energy performance exceeds a benchmark set in 2005, you may be able to claim this federal income tax deduction.

This applies to owners of commercial buildings and designers and/or builders of public buildings.

We recommend starting the process of certifying all 2014 EPAct 179D Tax Deduction projects as soon possible to ensure timely filing. It's easy.  Contact us to find out how.

PolycreteUSA’s new website makes it easier for architects, contractors and building owners to learn about a better way to build...

PolycreteUSA’s mission is to make it easy to design, build and own energy efficient structures that stand up to Mother Nature. We took another big step in that direction recently with the launch of a new website, PolycreteUSA.com.

We want to get our story across more clearly. Who we are, what we do and how we do it. We think the new format accomplishes that. Our technology has been used in Canada, Europe, Asia and even here in the US since 1988, but a lot of people here still think of it as new and mysterious. We want everyone in the construction community to see how cool it is and to realize that this technology really will make their project easier to complete.

Polycrete’s technology is a system for constructing commercial buildings with highly insulated concrete walls. Conventionally formed concrete walls involve a labor-intensive process of constructing a wood or metal formwork structure, filling it with concrete, then dis-assembling all the formwork after the concrete hardens. 

The Polycrete formwork is set up in a fraction of the time and does not have to be dis-assembled. It’s made from expanded polystyrene panels that contain a steel reinforcing structure which makes it strong enough to contain the concrete. Since the formwork becomes the insulation for the building, it also eliminates the insulating step in the construction process.

The Polycrete system eliminates several other steps, too. Four or more. Normally you would have to build a wood or steel stud wall inside the masonry wall to hold your insulation and sheetrock. That all goes away with this system because you can attach sheetrock directly to the Polycrete wall by means of its built-in steel fastening strips.

The new website includes useful information for architects, contractors and building owners.

Architects will be pleased to see CAD files that can be downloaded to make their design work easier and detailed information on how doors, windows, floors and roofs are incorporated.

Contractors will find complete information on assembling  Polycrete walls and how it works with electrical, plumbing and other building systems.  

Building owners can learn about operating costs savings and even how they can benefit from Federal tax credits and deductions from using the Polycrete system.  

Building products like the Polycrete Big Block ICF system have to undergo a thorough series of tests before they are approved by the International Code Council. The ICC sets the rules that most local building codes are based on. Polycrete makes all of its ICC test results available on the website for download.

Intertek testing service ran all of our ICC tests. They’re the number one building materials testing service on earth, and I can tell you their results prove Polycrete Big Block is the strongest ICF on the market. Fastener withdrawal, shear tests, fire ratings, you name it. Some other ICFs are close to us in one or two areas, but overall, The Big Block is tops. That’s why we put all the data on the web for the world to see. This is not just a salesman making up stories, it’s the real deal.

We want to hear from construction professionals after you look over the site. It’s an evolution. We’re currently working to develop more resources for installers. In the meantime, we really want to hear what the community thinks of what we’re presenting and what you like and dislike about the site. It’s not about us, it’s about you. We’re going to continue to improve our usefulness. If there‘s other info or services you’re looking for, tell us and we’ll figure out how we can get it for you. 

The new website is at www.PolycreteUSA.com. We’re also on Facebook. There’s more pictures on the Facebook page. Contractors send them to us as their jobs progress and we just throw them up on Facebook.

Smart Apartment Developers Stay on Top

Multi-family construction is booming right now and demand seems insatiable. But we all know that's not going to last. Smart developers look to maximize value for the long term and solid, energy efficient construction pays off.

According to a Rent.com survey, 86% of Americans would prefer to live in an eco-friendly space and 55% of those are willing to pay more in rent to do so.  Additionally,  42 % were willing to pay up to an extra  $100  to live in a green apartment, and 13% would pay even more than that.

PolycreteUSA believes sustainable construction must also be fast, strong and economical. That's why we're dedicated to making it EASY to design, build and own energy efficient buildings.

Smart developers know that Polycrete Big Block commercial grade insulated concrete form system eliminates subcontractors, saves money and gets their project completed fast. Polycrete®  ICFs get you a structural wall, fully insulated and ready for interior and exterior finishes all in one step.   IT’S EASY.

ICFs are forms for building reinforced concrete walls. After the concrete cures, the forms stay in place and serve as both the building’s insulation and the attachment point for sheet rock and your exterior finish.

There's a tax benefit to building with Polycrete, too. In order to encourage energy efficient construction, The Energy Policy Act of 2005 allows building owners to earn a Section 179D Federal Income Tax deduction of up to $1.60 per square foot. It's valid through the end of 2014.

But there are a whole bunch of other benefits to building ICF Multi-Families. That section 179D deduction is peanuts compared to your annual recurring savings. Here’s a few to mull over:

• Annual insurance costs will be significantly lower than “sticks and bricks” because concrete buildings don’t burn like wooden ones do.
• Monthly common area HVAC costs will be 40% less because your envelope walls will be R26+ and have minimal air infiltration.
• Occupancy rate will be higher. Here’s 2 reasons:
• Energy efficient apartments are more desirable (lower cost) to tenants.
• Acoustic values of STC 52+ make a very quiet building and superior acoustic performance increases occupancy rates.
• Lower construction interest. ICF walls go up much faster than wood. What’s your interest saving going to be if you shave the last 4 weeks off your construction loan and accelerate your rental revenue by a month?

A recent Massachusetts Institute of Technology study found that concrete buildings have a useful life of 75 years. This means that condo conversions will sell faster and when you divest yourself of your property 15 years from now, you’ll be selling a 21st century high-performance multi-family development only 20% into its useful life.

Savvy apartment developers know that environmentally friendly apartments have a lower turnover velocity and new green developments lease up fast. As multifamily development continues towards saturation, developers need to know about our company. Contact us today to learn more. PolycreteUSA.com   800-570-4313

K-12 Building That Generates Cash? Go Figure...

The Nation’s first net zero energy school was the subject of an article in Forbes recently because it just got its first full annual electric bill… errr, check. Yep, that’s right, after a full year in service, Richardsville Elementary School was paid $37,227 for the energy it delivered to the local electric utility.

If you were asked to guess where Richardsville Elementary School  is located, you might suggest California, Massachusetts, or Vermont -- where Prius ownership is highest and the politics bluest. Well, the answer’s nope, nope and nope. Richardsville’s in that red state of Kentucky.

Yes, Kentucky. Where the grass may be blue but the politics are red. Where coal is king, electric costs are the fourth lowest in the nation, and energy efficiency innovations yield taxpayers $3.3 Million in annual avoided costs.

You might ask what it means to be “Net Zero Energy”. It means that the building generates all the energy it needs (or more) to operate using various passive and active strategies like solar, wind, geothermal, etc. Public utilities are usually required to buy any excess energy generated from alternative energy producers hooked up to their grid and hence the check instead of a bill.

Typical annual energy costs for K-12 schools in the US are $1.25 per square foot. At 77,466 square feet, Richardsville earned almost 48¢ per square foot. In a state like Virginia, where average electric costs are 12.5¢/Kwh, that would translate to almost 75¢ per square foot or $58,100 per year in earnings and $155,000 in annual avoided costs. Assuming an interest rate of 3% and no increases in energy costs, that works out to more than $3 million saved over the expected life of the building.

You’re probably thinking that it costs a fortune to build such an efficient building and the up-front investment won’t stand up to economic analysis. You’d be wrong, though.

According to the National Clearinghouse for Educational Facilities, a program of the National Institute for Building Sciences, average Elementary School  construction cost in the US in 2010 was  $190 per square foot, and Richardsville came in at $156.

Part of the reason for the affordable construction costs is that it’s built with insulated concrete form technology. ICFs like Polycrete® Big Block™ are a very cost effective strategy for achieving high insulation value in walls and that allows downsizing of HVAC systems. ICF technology also adds of lot of other cost-saving attributes. A key to making the overall economic model of a net zero energy building work is controlling the costs of construction.

How does something like this happen? Well certainly not overnight. It took careful design and planning over a decade. Now, nearly all twenty-one schools in Kentucky's Warren County meet Energy Star certification. That accomplishment has resulted in more than $5 million in avoided energy costs to date. Real dollars that taxpayers did not have to shell out.

Richardsville’s Net Zero accomplishment is a result of its innovative building design. Although it’s  a typical school with classrooms, gym, cafeteria and such, many features are unique. Everything from the heating and cooling system to the lights work with sensors that automatically determine appropriate light and temperature levels and then make adjustments.

Most schools in the US operate at 73kBtus per square foot. The average Warren County Kentucky school uses 40.  In 2007, Warren County built Plano Elementary School to use 28. As it continued to work with its crack team of architects and engineers, it leveraged the lessons learned from Plano to design Richardsville to operate at 18 kBtus per sqft.  That’s less than 25% of the average school’s energy usage.

In 2008, Kentucky Governor Steve Beshear launched “Intelligent Energy Choices for Kentucky’s Future, Kentucky’s Seven Point Strategy for Energy Independence.” Despite that Kentucky is the nation’s 3^rd largest coal producer, the commonwealth's governing team introduced this far-sighted and ambitious program that's paying off in real dollars. 

It’s an oft repeated proverb that the cheapest energy is the energy you don’t use, but opponents of net zero insist it’s just a theory that won’t work in the real world. The Net Zero model that Richardsville Elementary’s design team pioneered has blown up that argument once and for all.

Imagine how net zero schools and government buildings will reduce the pressures on state and local budgets. Elimination of energy costs will free up funds for more teachers or other educational resources. Now that Richardsville’s proven the net zero model, we can feel comfortable repeating it for all new school construction. Our students and taxpayers deserve it.

For information on building your net zero design team, please call or email Bruce Anderson, PolycreteUSA 1-800-570-4313 Bruce@PolycreteUSA.com