It's essential these days for home builders to have eco-expertise. Aside from enticing buyers — whether those potential homeowners are into saving the planet or just some bucks on monthly bills — builders with the know-how can land themselves a hefty energy efficiency tax credit. While a key qualification for the 2021 credit is energy savings from heating and air conditioning, other factors like materials and appliance choices can make a difference in constructing an energy-efficient home. Ultimately, builders can come away from a project with a good conscience as well as financial savings by prioritizing eco-consciousness.
What are the tax credits?
Two energy efficiency tax credits are available for builders to claim on any home built between the beginning of 2018 and the end of 2021. The first is a $2,000 tax credit. To qualify, the new construction must achieve 50% energy savings from heating and air conditioning over the 2006 code requirements, and at least 20% of that savings must come from the building envelope — the separation barrier between inside and outside. The other available credit is a $1,000 one for producers of new manufactured homes that also must meet savings requirements.
Energy efficiency factors for a build
Builders can improve the energy efficiency of a home in several ways. Focusing on the building envelope is top of the list as this determines how much energy is needed for heating and air conditioning — usually the largest source of energy consumption in a home — but airtightness and the efficiency of the home's other appliances matter too.
- Increase the wall cavities. Extending the wall framing with two-by-six-inch studs rather than two-by-fours creates space for more insulation to protect the interior from the influence of hot and cold weather. Doing this can allow a boost in insulation value to R-7.
- Select windows and doors wisely. Up to 30% of energy can be lost through windows. Choose Energy Star Certified windows or double- or even triple-pane glass, and check for energy performance ratings to find the most efficient ones. Also make sure all windows and doors are flashed and caulked appropriately to prevent air exchange.
- Test for airtightness. Perform a blower door test, which uses pumped air and infrared cameras, to determine if there are any leaks. A nontoxic smoke may also be used. If any leakage is found, ensure all joints are caulked and gaps are filled with spray foam or other material to block airflow.
- Opt for Energy Star Certified appliances. These are rated for how much less energy they consume than standard ones. Samsung has a wide selection of Energy Star refrigerators, dishwashers, ranges and other appliances and is one of few companies recognized by the EPA for its achievements in energy efficiency.
Commitment to the future
The market continues to demand that homebuilders provide more energy-efficient homes, whether with or without an energy efficiency tax credit. Gen Z and millennials — who are right at the precipice of home buying — are more environmentally motivated than previous generations, meaning energy efficiency will be paramount in all new home construction.
Builders can rely on a company like Samsung as this trend continues. On a big-picture, industry level, Samsung has committed to helping the environment by actively taking sustainability measures and reducing the carbon footprint of its appliances. It's a movement that flows through to our customers by making eco-conscious products that help people boost their own everyday energy efficiency — and consequently reduce their monthly energy bills.
And Samsung's green-driven innovation doesn't just stop at the product purchase. SmartThings Energy is a first-of-its-kind solution that lets consumers take control of their own eco-driven decisions. The service, operated with an easy-to-use app, offers Samsung appliance owners a real-time view of the energy consumption for each household task and lets them set targets for their individual needs.
Details like these let builders feel at ease with prioritizing energy efficiency. Homebuyers and renters will appreciate the effort put into creating an eco-conscious property from the start, and builders can reap both the satisfaction of energy mindfulness as well as the tax benefits.