Taxes

This week, like so many other folks, Scott and I completed our 2010 income tax return. Since we have put so much planning and money into the solar water heating system of our house, we were actually looking forward to a small portion of the process - form 5695, Residential Energy Credits. Since we were already aware of the limitations of the tax credit, we were not surprised when we read step one of part one which asks... Were the qualified energy efficiency improvements or residential energy property costs for your main home located in the United States... and then cautions... If you checked the “No” box, you cannot claim the non-business energy property credit. Do not complete Part 1. That section of the form only applies to existing homes that are primary residences. Once our Torrey house is finished, we'll sell our Logan house and move. Until that time, however, Part 1 of form 5695 does not apply to us.

It is the other side of the form, Part 2 - Residential Energy Efficient Property Credit - that addresses our situation, new construction. We were able to receive a credit in the amount of 30% of the 2010 cost of our system. Hooray! And we’ll be able to receive 30% of our 2011 expenses when we file next year’s tax return.

Sometimes the government passes legislation that helps the little guys. Hooray again!

Granted

We received word from the state of Utah’s Renewable Energy Program that we have been granted a reservation for a rebate in the amount of $3,547.00. This will help with the cost of the installation of our solar thermal hot water system. The system must be in place and operational by March 3, 2011. By that date we must provide a signed rebate claim form with the required supporting documentation.

Luckily we have made great progress on the radiant heat floor which is a large part of heating system. Along the way we have learned a few new skills. It is quite a stretch, however, to say that we are skilled. Most of what we are doing seems to be something of a flounder after which we are required to learn a new “skill.” While we have always admired people who can build things with their hands, we now regard truly skilled workers with the highest esteem.

Here is a snapshot of the evolution of our floor...

 Gravel delivered

Bernardo distributes the gravel across the floor space

Bernardo and Tyler level the gravel

Vapor barrier over gravel layer

 Insulation over vapor barrier

Road base over insulation in the center of the house where we will eventually complete the earthen floor.

Our friend, Dee Jukes-Cooper, tamps the road base of the earthen floor.

Scott and Doug lay down rebar over the road base. PEX for the radiant floor will be attached to the rebar in the earthen floor section of the house. PEX is attached to a track on the insulation in the other parts of the house.

The four-man team of Scott, Mary, Doug and Shanna install the PEX.

Mary works on the manifold which will control the system.

All of the PEX is in and the manifold is completed.

Tyler's crew pours the cement floor for our bedroom and for Scott's office.

Tyler's crew puts the finishing touches on the concrete pour.

Bernardo smoothing the cement

Jed working from a unique perch

Kyle doing his part. How can he do this work in shorts?

The next day Jed and Bernardo return to cut a 3-foot by 3-foot grid into the floor. This will control the cracks that will inevitably appear in the floor. We hope the pattern will look like very large stone tiles.

The floor is basically done until we get to the very end. That's when we will seal the concrete and finally create the earthen floor. Here is a link that will give more information on earthen floors.

Rebates

A few years ago we subscribed to Natural Home Magazine.  Their subscription page states that they give, “...an up-to-date outlook on current trends in sustainable building and wholesome living. Natural Home gives today’s eco-conscious homeowners the information they need to live in nurturing, healthy homes.” It sounds pretty new-agey, but the magazine really does have some good information. In fact, my only complaint rests with the homes they often feature. These are typically 4,500 square foot plus homes with green denim insulation or inspired landscaping. To us, it seems like most of the homes are structures that require the homeowner to have vaults full of money that enable them to build a “sustainable and wholesome” home.

Scott and I don’t have money like that. We feel like regular folks who hope to live in a home that allows us to exist in harmony with our planet. Yes, we’ve got our own eco-slant, but we really would like to build our house using local resources, work with folks who will be our neighbors and, when we are finally moved in, have completed a project that didn’t violate our commitment to taking care of Mother Earth.

Budget plays a large role in our decisions. I’ve been keeping track of our expenses in several spreadsheets: garage construction, house construction, site preparation and landscaping, things we would have bought anyway and tools. (It’s astounding how much money goes into tools!)

After receiving bids for windows, a roof and the garage, we noticed everything seemed to come in increments of $30,000. When I mentioned this to my dad, he chuckled and said he and Mom had observed  a similar phenomenon when they built their house in the early 1980’s except they worked in $10,000 increments. That’s inflation for you.

The $30,000 plumbing bid really came as a shock to me even though it included all of the plumbing for the house, our radiant heat flooring and the solar thermal hot water system. Still, with bills like that, how would be ever be able to build a house for under $250,000? Maybe the good news we were soon to receive would help.

One day after Phillip delivered that staggering plumbing bid, Larry Wilkins of Tempcast, sent us information about an income tax credit offered through the state of Utah for renewable energy systems. The investment tax credit for residential systems offers a 25 percent credit for qualifying equipment and installation costs up to a maximum of $2,000. The design of our house includes technologies that qualify for this tax credit, so Scott immediately filled out the application and sent it off.

The site entitled Incentives / Policies for Renewables and Efficiency also proved to be very useful as did this Financial Incentives site. If we receive all of the state and federal grants and tax credits we've just applied for, our $30,000 plumbing system will become a $23,000 plumbing system. Hooray for rebates!