Tax credit for energy in the 1980’s?
Posted 05/10/2011 by Siti Crook
Tax Credit for Energy in the 1980’s
Dennis and I began building new energy efficient homes in the 1980’s. When we first started, builders were pleased if they had $10,000 a house left after completion, all bills paid and the sale of the home settled. If there were investors in the project the remaining $10,000 was shared with them.
The Energy tax incentives in existence until the mid-1980’s, were primarily for alternative energy systems, and difficult to obtain for building envelope improvements that saved energy.
Twenty plus years later and before the housing industry meltdown in 2008, builders aimed for a $100,000 profit on a conventionally built energy wasteful house. With $100,000 as a builder’s target profit one should be asking how much was actually spent on the construction of the building. Of the building costs, how much money was actually allocated for building envelope improvements that save energy.
We know construction math and profitability. The following is a partial list of new home construction line items:
• Acquisition cost of the land, including fees
• Legal fees for township/municipality approvals
• Engineers fees
• Architects fees
• Building permit fees
• Site improvements, i.e. sewer or septic systems, and water
• Insurances, builder’s liability, risk, and worker’s compensation
• Home construction (variable)
• Financing fees
• ROI- Investor’s return on investment
• Real Estate agency fees
• Builders’ soft costs (legal and accounting fees, etc.)
• Seller’s transfer taxes
Home construction quality, especially building envelope improvements, is sacrificed to pay one or more of the other line items. In fact, the construction cost line items were (and still are) viewed as a variable expense of the development costs. When costs savings are at the expense of construction it’s a no wonder homes waste energy.
The homebuyer pays the price three times. Once in the purchase price of the home, the second time for increased operating costs, and the third time to repair the cost cutting measures.
Fortunately, times have changed somewhat. The creation of the Energy Star program, a third party oversight organization, validates energy savings in appliances and new home construction. Quantifiable standards make measuring a new home’s energy consumption feasible, and energy tax incentives possible for more than just alternative energy systems.
Builder’s concerned with the negative environmental impact caused by energy wasteful building cost-cutting won’t cut construction costs to increase profits at the expense of energy efficiency and sustainable building.
41 Responses to “Tax credit for energy in the 1980’s?”
Leave a Reply
You must be logged in to post a comment.
Go To Top ↑
May 9th, 2011 at 9:46 am
Spot on with this write-up, I truly think this website needs much more consideration. I’ll probably be again to read much more, thanks for that info.
May 14th, 2011 at 5:44 am
Aw, this was a very nice post. In concept I would like to put in writing like this additionally … taking time and actual effort to make a very good article… but what can I say… I procrastinate alot and on no account seem to get one thing done.
May 17th, 2011 at 3:33 am
WONDERFUL Post.thanks for share..more wait .. …
May 17th, 2011 at 5:50 pm
salut
May 17th, 2011 at 11:25 pm
It’s the little changes that make the most dramatic changes.
May 20th, 2011 at 3:39 am
Good article, thanks and we want more! Added to FeedBurner as well
May 22nd, 2011 at 10:29 pm
Nice topic, thanks for the share.
May 24th, 2011 at 6:44 am
Thank you for the sensible critique. Me and my neighbor were just preparing to do a little research on this. We got a grab a book from our area library but I think I learned more clear info from this post. I’m very glad to see such great information being shared freely out there.
May 26th, 2011 at 6:41 pm
Amazing blog! I found your post on Google! Thanks!
May 31st, 2011 at 12:10 am
I thought it was going to be some boring previous post, but it seriously compensated for my time. I will publish a website link to this page on my weblog. I am certain my website visitors will discover that pretty useful.
May 31st, 2011 at 1:35 am
Interesting and very rattling true. Bookmarked.
June 2nd, 2011 at 9:27 am
Wow, amazing blog format! How long have you been running a blog for? You make running a blog look easy. The full glance of your web site is magnificent, neatly as the content!
June 2nd, 2011 at 8:03 pm
An interesting dialogue is price comment. I feel that it’s best to write extra on this matter, it won’t be a taboo topic however generally individuals are not sufficient to talk on such topics. To the next. Cheers
June 3rd, 2011 at 3:43 am
Yay google is my queen assisted me to find this great internet site ! .
June 4th, 2011 at 3:43 am
It’s actually a great and useful piece of info. I’m satisfied that you simply shared this useful info with us. Please keep us informed. Thanks for sharing.
June 4th, 2011 at 2:55 pm
You made some decent points there. I looked on the internet for the issue and found most individuals will go along with with your website.
June 5th, 2011 at 11:54 pm
There is noticeably a bundle to know about this.
June 6th, 2011 at 6:12 am
I am glad to be one of several visitors on this great site (:, appreciate it for putting up.
June 6th, 2011 at 9:05 am
useful and informative. thank you for taking the time to put this up.
June 6th, 2011 at 9:30 am
a borrower should be well aware that the net amount he or she receives will be less than the actual loan he applied for and the amount he will be paying will be way more than the loan itself because of interests.
June 6th, 2011 at 9:37 am
great resources here. I’ll be back for the next your posting. keep writing and happy blogging.
June 6th, 2011 at 5:24 pm
There is noticeably a bundle to know about this. I assume you made certain nice points in features also.
June 6th, 2011 at 6:18 pm
This is a really informative post. Thank you for sharing it with us.
June 8th, 2011 at 6:50 am
Greetings from Los angeles! I’m bored to tears at work so I decided to browse your blog on my iphone during lunch break. I love the knowledge you present here and can’t wait to take a look when I get home. I’m shocked at how quick your blog loaded on my cell phone .. I’m not even using WIFI, just 3G .. Anyhow, great blog!
June 8th, 2011 at 7:24 am
Thanks for the marvelous posting! I definitely enjoyed reading it, you may be a great author.I will remember to bookmark your blog and will come back in the foreseeable future. I want to encourage you continue your great posts, have a nice morning!
June 8th, 2011 at 8:18 am
Pretty cool post! It was so interesting with lots of cool tidbit. Thanks for sharing the info.
June 8th, 2011 at 1:46 pm
Like the way you’ve written your ideas in this post. Thoroughly enjoyed it. Thanks for putting it up, and I will surely be back for more!
June 9th, 2011 at 2:34 am
Extremely inspiring. It’s amazing what can be done when we put our minds to it.
June 10th, 2011 at 5:48 am
Very informative and useful post. You have nice command on the post and have explained in a very great way. Thanks for helping .Good work,hope your blog be better!I just want to make a blog like this!
June 10th, 2011 at 4:17 pm
Hi! I just want to tell you that I found this blog really useful to me. I will visit this blog regularly to read more. Thanks.
June 12th, 2011 at 4:47 am
More people need to read this and act on it. Great post.
June 13th, 2011 at 5:02 am
Hi! I just want to tell you that I found this blog really useful to me. I will visit this blog regularly to read more. Thanks.
June 18th, 2011 at 7:58 am
A word to the wise is sufficient.
June 18th, 2011 at 4:05 pm
Honesty is the best policy.
July 2nd, 2011 at 2:38 pm
Good job on your blog, I read it all the time but rarely comment – but I just wanted you to know this is fantastic.
July 23rd, 2011 at 10:20 pm
I have looked at eco-friendly alternatives, so far I have installed solar panels on my home but while looking for a electric car I find the cost doesnt justify it for me. While I am passionate about making green choices whenever possible it is up to people like you and I to spread awareness and let the companies know there is a demand. Your website looks popular and I think you can help influence society with your insight and eco tips. by the way I found your site by searching Energy Efficient Homes Team, Blog Archive,Tax credit for energy in the 1980’s? and you were the first result. So I think your website is a good platform to discuss ideas that are thought provoking and influence your readers to go green. – Good luck with your site, you deserve it! Please continue to talk about more eco-tips, every idea helps us get closer day by day!
September 8th, 2011 at 5:22 am
What is up, wonderful web-site. I enjoy your layout. I finished cosmetic classes and also set up my own webpage. Thanks for the amazing publish!
September 19th, 2011 at 5:01 am
OH HAI…
Fantastic goods from you, man. I have understand your stuff previous to and you’re just too excellent. I actually like what you’ve acquired here, really like what you are stating and the way in which you say it. You make it entertaining and you still…
September 21st, 2011 at 3:29 am
This is really interesting, You are a very skilled blogger. I have joined your feed and look forward to seeking more of your fantastic post. Also, I have shared your web site in my social networks!…
November 5th, 2011 at 7:28 pm
I saw someone writing about this on Tumblr and it linked to…
April 20th, 2013 at 6:38 am
Souls in the Waves…
Excellent Morning, I just stopped in to go to your web site and believed I would say I liked myself….