Building Homes with Propane Tax Incentives and More

July 20, 2021 ____ Home Owners, Business Owners

All sorts of unexpected costs pop up while building a home. Unexpected savings is less common. But a new exemption offers just that for integrating propane into a home’s energy plan.

The Section 179D exemption, also known as the 179D EPACT Tax Deduction, is now a permanent program enacted as part of the Consolidated Appropriations Act of 2021 which was signed into law December 27, 2020.

The exemption works to encourage building owners to reduce their properties’ energy consumption in the form of a commercial buildings energy efficiency tax deduction.

This exemption is particularly beneficial for commercial building owners who qualify. They now may be able to claim a tax deduction for installing renewable energy or qualifying energy saving systems and equipment.

Buildings are required to gain energy savings in hot water or HVAC systems, which is exactly where propane systems shine; providing high efficiency, reliability and convenience.

There is more in reaping benefits of homes built with propane. Propane is a domestic, clean, versatile and safe energy source. Made in America, it is a nontoxic gas produced from natural gas processing and crude oil refining.  The U.S. is a net propane exporter – we make more of it than is required to meet demand.

2011 saw the start of the shale revolution which allowed the U.S. to dramatically increase oil and natural gas production. In turn, there has been an increase in the domestic propane supply. Today, propane can do even more to protect our energy security and the environment. Propane as the primary energy source in building and remodeling homes is highly advantageous on many fronts.

All-Propane Homes Offer High Efficiency and Low Maintenance. 

Propane fuel is already being used in over 48 million Americans for residential, transportation, commercial, industrial and agricultural applications. Propane is the best alternative with respect to gas energy when natural gas is not available or the cost and convenience of bringing natural gas to a home site are not reasonable.

An additional feature for customers using propane appliances is clean and reliable on-site energy. This is particularly advantageous for customers who add a standby generator which reliably protects them from unexpected power outages.

Upgrades using propane as a whole-home energy provides for superior comfort, convenience and efficiency compared with all-electric homes. Residential and commercial buildings both can reap in propane’s benefits including lower energy bills. High efficiency propane appliances provide optimal energy performance when compared to electric alternatives.

Choosing propane appliances helps reduce energy costs. They are usually much more efficient than electric models and often require less maintenance.  The bundling of appliances often results in the highest energy cost savings benefits to the homeowner.

Propane powers highly efficient appliances for a home’s most important energy applications. Even your most demanding customers’ expectations will be met with style and ease.  And fueling homes with propane means a lower overall carbon footprint.

Green building tax deductions and credits may be available from the federal government. Customers may reap maximum benefits in the form of energy rebates from available federal, state, and local energy rebate and tax credit programs.

Builders and remodelers can earn up to $1,500 per home with the Propane Construction Incentive Program. The Propane Education & Research Council (PERC) will pay up to $1,000 for each new home or remodel that is completed in 2021 when propane appliances are used.  An additional $500 “regional bonus” may be earned for installing specified propane appliances. This adds up to $1,500.

That means money back in the pockets of homeowners and builders simply in exchange for using propane, the preferable energy source. It’s a win-win.

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