Builders are increasingly looking to ICF construction for its many benefits. Beyond stronger concrete and energy efficiency, some builders may be eligible for tax breaks associated with ICF construction. This post will cover tax incentives for ICF builders.
Tax Incentives Available to ICF Builders
US Federal Tax Incentives
Energy Efficient Home Credit (Section 45L)
Overview: Builders of new energy-efficient homes can get a tax credit.
Eligibility: Homes must meet certain ENERGY STAR standards.
Benefit: Up to $5,000 credit per home.
Commercial Building Tax Deduction (Section 179D)
Overview: This deduction applies to energy-efficient commercial buildings.
Eligibility: Buildings must meet specific energy-saving goals.
Benefit: Up to $5.65 per square foot for buildings that cut energy and power costs by 50%.
Regional Tax Incentives
California: CALGreen
It is the nation’s first state-mandated green building code. CALGreen’s purpose is to reduce GHG emissions by constructing green buildings. Using ICF walls can help builders achieve these goals.
New Jersey: 2023 Low-Carbon Law (LECCLA)
The law allows concrete producers to use traditional and new technologies to reduce carbon emissions in concrete production. Meeting the benchmarks will earn them a tax credit worth up to eight percent of the contract’s value. To qualify, concrete producers must provide more than 50 yards for state-funded projects within a year.
Pennsylvania: GreenGov Council
Pennsylvania’s GreenGov Council integrates sustainable methods into the state’s operations. It includes policy, planning, procurement, operations, and regulation. Three state government department secretaries chair the council. They are the Environmental Protection, Conservation and Natural Resources, and General Services departments.
Toronto: Better Buildings Partnership (BBP)
The BBP was started in 1996 to help building developers, managers, and owners in Toronto reach energy efficiency targets. With the BBP, building owners and developers can enjoy a range of services to improve energy efficiency. The program also includes various incentives for taking energy-saving measures.
As you can see, governments around North America offer tax incentives for achieving green building standards. In many cases, ICF construction can go a long way toward achieving these goals. However, it is important to note that these programs can change or expire. Governments may also roll out new tax incentives in the future. Builders, designers, and property owners should consult tax professionals to learn more about these benefits.
Are you interested in building with ICFs? Click here to contact the team from SuperForm. Our innovative ICF system simplifies construction while creating stronger concrete. Reach out now to learn more about the benefits of SuperForm building products.
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