Get Tax Incentives for Insulation Retrofits on Steel Buildings

Steel buildings are designed to be easy to insulate, but many owners only do the bare minimum of insulation for budget reasons. If you own or design steel buildings for commercial use, however, a tax incentive that’s available through the end of 2013 can reduce the cost of adding insulation that you may not have installed when you first did your construction. In fact, there are a number of energy efficiency improvements you can do that will make your steel building more energy efficient while providing a little give-back in the way of a temporary tax deduction.

Tax Incentives for Energy Efficiency Improvements to Steel Buildings

These specifics are provided by the U.S. Department of Energy.

Owners and designers of commercial steel buildings can take a tax deduction of up to $1.80 per square foot for improvements that save at least 50% of the heating/cooling energy for a building, providing that building meets ASHRAE Standard 90.1-2001. For improvements or installations that affect either the building envelope, the heating and cooling systems or the lighting system, building owners can take a partial deduction of up to $.60 per square foot, as long as the insulation and energy systems were installed or “placed in service” between January 1, 2006 and December 31, 2013.

What Does This Mean for Your Steel Building?

These incentives are not confined strictly to steel buildings, but they are available to owners of commercial metal buildings along with other industrial buildings. Steel buildings have very specific insulation requirements, including the need for a vapor barrier. If you’ve erected a steel building for commercial use since January 1, 2006 – or intend to erect one this year – you may be eligible to take a hefty tax deduction for your investment in insulation.

More Than Just Insulation

In addition to standard insulation, you may also be able to take a deduction for other energy efficiency improvements that make significant reductions in energy use for heating, lighting or cooling. If you’re not sure about whether specific energy efficient installations will qualify for the deduction, your best option is to ask the manufacturer or steel building supplier about it. Many metal buildings manufacturers are actively promoting insulation and other green improvements that may qualify you for the tax deduction, so there’s a good chance your salesperson will be able to point you in the right direction.

Steel buildings are a green choice to begin with, but you can make them even greener – and save a little bit on your taxes at the same time – when you make energy efficient choices for accessories and insulation.