Author: justin gaydos

Launched in 2005, the 45L tax credit provides tax incentives to builders of energy-efficient homes in the U.S. Available on a year-to-year basis, the program has always existed with a level of unpredictability. It would all depend on if it were in effect.

Consequently, many builders have not taken advantage of 45L because they simply did not know if it was going to be renewed. It was difficult to react within a single calendar year and justify the added coordination and expenses if the program was going to end.

August 2022, President Biden signed the Inflation Reduction Act, which extended the 45L tax credits for the remainder of 2022 with new provisions starting in 2023. Beginning on January 1, 2023, builders of single family homes that meet the ENERGY STAR Certified Homes V3.1 (V3.2 in 2025) program 2021 IECC prescriptive envelope standards will be eligible for a federal tax credit of $2,500 per home.

The program will now run through 2032.

On a parallel path, builders who adhere to the Department of Energy’s Zero Energy Ready Home (ZERH) program can earn up to $5,000 back in tax credits per build.

If a builder applies these sustainable building practices across every home they build over the next 10 years, they set themselves up for major savings.

It starts by taking a holistic approach with even more attention to detail. The goal when planning and then building a home is to ensure all energy-saving measures are working in conjunction with one another to save costs and reduce the structure’s overall carbon footprint:

• Cooling equipment and air conditioning units.
• Heating equipment and furnaces.
• Building envelope insulation levels.
• Windows, skylights, and doors with appropriate U-values.
• Water heater equipment.
• Thermostat and ductwork.
• ENERGY STAR^® lighting and appliances.

One of the key elements to executing a comprehensive plan is the materials chosen for the building envelope, particularly insulation.

The Importance of Insulation

Insulation is one of the most critical elements to ensure homes meet either ENERGY STAR or DOE ZERH requirements. Even the most efficient, effective heating and cooling systems are rendered useless without high-quality insulation in the walls, floors, and attic.

In fact, zeroing in on insulation as a builder can go a long way in earning tax credits. High-quality insulation, including products such as OX-IS, dramatically increases the R-value of an exterior wall. OX-IS is a 4-in-1 structural continuous insulation product that delivers the ultimate in thermal performance because it is installed outboard the studs continuously without a break.

In just a single-component, the OX-IS system does what it takes OSB, building wrap, and foam insulation boards combined to do. And OX-IS boasts a significantly lighter composition, remains more economical, and is a single-component solution. When OX-IS panels are installed with the appropriate OX seam tapes, the system provides a lasting best-in-class air barrier and a 30-year limited warranty.

Continuous insulation products that are integrated with a superior air and water-resistive barrier also contribute to a lower Home Energy Rating System (HERS) score. Not only does a lower HERS score boost the value of a home, but it points directly to its energy efficiency, thereby serving as a validated proof point for builders to earn the 45L tax credits. Having a HERS rater review the design can heavily contribute to a structure’s ability to meet energy use targets and eligibility for 45L.

Making More Homes Eligible

Consider this theoretical scenario for builders. If a builder follows the appropriate guidelines, incorporates a code-compliant ENERGY STAR air conditioning unit, and builds exterior walls with 1-inch OX-IS (R-6) and standard batt insulation, it could take their current total number of homes that qualify for the 45L tax credit from 15% to somewhere closer to 90%.

In this scenario, which builders can realistically achieve by swapping out regular sheathing for high-performance, integrated structural continuous insulation, they can increase the number of projects that they qualify for sizable tax rebates by a factor of six.

For someone that builds 100 homes a year and receives the full $2,500 credit per home, that’s $225,000 a year.

The Basics: ENERGY STAR and ZERH

There are two methods to achieve an ENERGY STAR Certified Home: The Prescriptive Path and the Performance Path.

The Prescriptive Path provides a single set of measures that must be followed to construct an ENERGY STAR Certified Home. Here, modeling is not required beforehand, but no product or system tradeoffs are allowed. Builders must follow the construction blueprint and build to an exact standard.

The Performance Path provides more flexibility to select a custom combination of measures for each home that is equivalent in performance to the minimum requirements of the ENERGY STAR reference design home. Equivalent performance is assessed through energy modeling.

For a DOE ZERH, the home must meet the minimum specified requirements set by the DOE, be verified and field-tested by an approved energy rater upon completion, and meet all other applicable codes. If local building codes exceed the standards set by the ZERH program, those local requirements must be met. Remember that the builder and the rater must both sign a DOE ZERH partner agreement for a home to become certified.

Why This All Matters

Rising utility costs and a dire need to preserve energy and protect the planet have given way to these types of programs that help combat climate change. The government and other leading energy organizations are working hard to carve a simpler path forward for builders and homeowners to benefit from sustainable building and living.

Therefore, building to ENERGY STAR and DOE ZERH standards is more important than ever. What’s more, the monetary benefits that can be gained from adjusting building practices to meet these specific requirements makes doing so an obvious choice. Plus, it does not require a complete overhaul to current construction methods or product choices.

If a builder is already incorporating sustainable building practices into their daily work, making small changes such as utilizing structural continuous insulation can go a long way. Doing so can earn them a spot as a go-to sustainable builder in their community where they can tout the fact that they meet the most stringent standards in residential homebuilding. And of course – for at least the next 10 years – they will receive significant annual tax credit reimbursements for doing their part to create a greener built world.

For homebuilders and their approach to their trade, one thing is certain: Change is a constant. Becoming more commonplace are governmental adaptations to improving codes that align with international energy alliances and an overall push for a more sustainable building approach.

Cities like Denton, TX, which had previously followed the International Energy Conservation Code from 2015, are amending local codes that run in tandem with the International Code Council’s 2021 guidelines. Area homebuilders and developers anticipate that larger cities like Dallas/Fort Worth will soon follow suit.

Fortunately, general contractors and homebuilders can ensure advance compliance by learning to build with the appropriate materials now to help them meet code, or by supplementing their go-to products with additional high-performance insulation solutions. 

What’s Within the New Standards?

Specific changes most notably apply to the thermal envelope, which will be tested in accordance with codes such as ASTM E779, which uses fan pressurization to determine air leakage rate.

For builders, eliminating air leakage is critical for all types of construction, especially in atypically hot or cold climates. The more air permitted to enter or exit, the less thermally efficient the building is. In turn, greater reliance on HVAC is required.

Measured air leakage is given a specific restriction value—in this case, 0.30 cfm/ft² of the testing unit enclosure area at a pressure differential of 0.2 inch water gauge (50 Pa). In multifamily spaces, each unit is considered an individual testing unit where the building’s air leakage is a weighted average. Identifying proper air barrier and insulation methods will be critical for builders as codes change throughout the country and tests become even more stringent. Integrated products that combine sheathing, control layers, and insulation in one make it even easier for builders to adapt.

R-Value Considerations

One of the most considerable changes to codes such as those implemented in Denton are updates to insulation minimum R-values. In climate zone three, for instance, builders of wood frame structures must meet R-values of 19 or 13+3ci or 0+15ci. And in many other regions of the United States, these values jump to R-20.

For builders in these areas who are accustomed to using cavity insulation only, supplementing with more efficient continuous insulation solutions can help to maintain compliance with these codes.

To aid with compliance, building supply companies such as OX Engineered Products have materials that are already helping builders exceed these codes, and even those that may be on the horizon. After all, preparations for the 2024 International Energy Conservation Code are already in the works.

OX offers solutions for these codes that are practical, easy to install, and still remain cost competitive. For example, products such as OX-IS – a robust polyisocyanurate continuous insulation – serves as a 4-in-1 weatherization system that is installed directly on exterior, above-grade 2×4 wood-framed walls. It is, itself, an impressive insulating barrier, and comes in 1.70” R-10, 1.00” R-6, 0.92” R-5, and 0.50” R-3 configurations.

When coupled with R-13 cavity insulation, the 1.70” R-10 OX-IS offers ample protection in the toughest climate zones, four through eight.

Rationale & Benefits

As part of the federal Inflation Reduction Act of 2022, the extension of the 45L tax credit also means that homeowners and developers can receive financial incentives for upping the energy efficiency of new residential construction.

Though they may be stringent, such code changes are designed with the evolving needs of homes and their occupants and pay more attention to overall health, wellbeing, and energy efficiency. In fact, municipalities like Denton, TX, specifically make mention in their amendment that the shift “is in the best interests of public health, safety and welfare.”

In addition, some cities are simultaneously ensuring adherence to these codes through separate health and building standards commissions.

Why the Switch is Worthwhile

Though code changes may elicit initial resistance from developers, general contractors, or builders, it is important to remember why they exist.

Thanks to better technology, more advanced installation techniques, and higher-quality engineered products, builders can ensure that occupants remain as comfortable as possible in their homes for generations. Measurements like R-values serve to help families grow happily and with less burden from increasing energy costs. In addition, strides being made to reduce energy consumption have environmental benefits, such as lower greenhouse gas emissions.

In the truest sense, the industry’s collective and individual adherence to upgraded building codes and global energy conservation is for the benefit of future generations. This is why it is important for cities around the world to contribute and do their part, just like Denton and many others have.

Company Introduces Innovative Technology Creating a 5-in-1 Continuous Insulation

NORTHVILLE, MI (January 30, 2023) – OX Engineered Products, manufacturer of industry-leading structural sheathing and thermal insulation, will unveil a new technology that can be applied to its insulation products during its time as an exhibitor at the 2023 International Builders’ Show (IBS), taking place at the Las Vegas Convention Center January 31 through February 2, 2023. The new Integrated Drainage Plane (IDP) technology will be available on the company’s OX-IS™ and ISO RED ci® products. This development makes OX-IS the first of its kind: a game-changing 5-in-1 structural continuous insulation. 

 “At OX, we put a premium on innovation – from the durability and reliability our products offer to the efficiencies they generate during the construction process,” said Todd Gluski, director of marketing at OX Engineered Products. “When you can take multiple exterior wall control layers and consolidate them into one product, you save a great deal of time, money, and coordination, and that represents a true value proposition to construction professionals of every kind.”  

 The new IDP technology effectively turns the high-performance 4-in-1 OX-IS into a 5-in-1 product by adding a textured water-repelling drainage plane as the material’s facer. The integrated product combines five layers into one: the new drainage plane, continuous insulation, structural sheathing, an air barrier, and a water-resistive barrier. 

 IDP technology can also be applied to ISO RED ci, a rigid polyiso insulation product used to increase energy efficiency in ceilings and interior and exterior walls. The product adds much-needed R-value to residential and light commercial construction projects.  

 “IDP technology is the latest example of our commitment to serving our customers’ most pressing needs at a time when the residential construction industry faces headwinds from economic uncertainty and builders continue to look for ways to deliver on their customers’ demands,” added Gluski. “We look forward to demonstrating the game-changing features of our products to IBS attendees so they can make informed decisions as they select the best products for their projects.” 

 OX will be located at Booth C2649 in the central hall the convention center.  

 To learn more about OX and its integrated building envelope solutions, visit: https://www.strengthofox.com/ 

EDITOR’S NOTE: OX will share images of the new technology with the media at the conclusion of the show. In addition, OX subject matter experts are available for interviews during the show. To secure an appointment, please contact Jake Michalski at jake.michalski@bld-marketing.com. 

Low- to mid-rise multifamily residential construction projects present a unique set of challenges based on sheer size alone. Consider the exterior of these structures: More materials are needed to frame and wrap the building, contractors need more hands on deck, and project timelines naturally run longer. 

Builders are seeking alternative materials to complete structures on time (or quicker) and on budget (or even under budget) than they can with traditional construction methods and materials. Many of these construction pros are turning to solutions such as OX’s range of weatherization systems because they are high-performance, cost competitive, and they integrate a number of exterior wall components in one. 

For large-scale multifamily structures, the benefits of using these innovative products cannot be overstated. 

Trimming Time 

Once a structure is framed out, there are a number of components that must be installed on the exterior side of the studs to ensure long-term performance and durability. The first component needed is structural sheathing, which gives a multifamily building its rigidity and strength. Sheathing also serves as the surface for the application of exterior finishing materials, such as siding, brick, or stone. Next, builders must install weather-resistive barriers to keep air and moisture out. Once this is complete, a layer of continuous insulation can be added to maximize the thermal performance of the building envelope. 

Layer by layer, floor by floor. For multifamily construction, it adds up, and time and cost are both on the line. 

Installing each of these layers separately can expand the installation process, adding days onto a construction schedule. With integrated weatherization systems, construction crews only have to worry about installing one material to take care of every single exterior control layer. Choosing an integrated material that combines sheathing, weather-resistive barriers, and continuous insulation translates into serious cost, labor, and time savings. 

The Long Game 

The larger the structure, the more energy it consumes and the larger its carbon footprint is. As a builder, if you can take the appropriate steps to thermally insulate and weatherize a structure during the initial phases of construction, you deliver a building that remains green throughout its life span. 

According to an ENERGY STAR article, “a comprehensive, strategic approach to energy management can improve the energy efficiency of U.S. multifamily properties by 15-30% and save $3.4 billion in utility costs.” 

The benefits of proper insulation become readily apparent to owners and occupants. 

Owners can market their multifamily structure as an energy-efficient dwelling to draw in buyers and renters. For owners seeking net-zero status for their building, weatherization systems from OX are a cost-effective means of meeting the net-zero standard. By helping structures earn a higher R-value, continuous insulation allows owners to meet rising regulations for their buildings that, in certain jurisdictions, must be built with exterior walls rated to R-20. 

Alternatively, for occupants, they can expect thermally-sound structures to deliver savings on their monthly energy bills. In addition, walls built with structural continuous insulation deliver more comfortable interior environments so that those living in these spaces spend less time opening and closing windows or adjusting the temperature on the thermostat. Buildings that are properly insulated keep interior spaces at a comfortable temperature for longer periods of time. This is true for all seasons. 

The Multifamily Fix 

OX Engineered Products offers two high-performance solutions ideal for multifamily structures: OX-IS and STRONG-R. Both products are 4-in-1 solutions that include all the necessary elements that must come between the studs and cladding: 

• Structural sheathing 
• Continuous insulation 
• An air barrier 
• A water-resistive barrier 

Both products allow multifamily builders to save time and money while meeting code requirements for exterior walls. The bigger the structure, the more important it is for builders to consider products that are going to allow them to save money and move on to their next job quicker. 

Consider the savings a Nashville builder had on a smaller, residential project. 

“The more we use OX-IS, the better we like it. It is stable in price, and performance-wise, it does a lot of things that OSB does not,” explained the builder. 

“Best of all, it saves us about $3,000 to $3,500 per house compared to using OSB and housewrap.” 

These savings are amplified on large-scale multifamily jobs. 

Learn how integrated structural continuous insulation products from OX can help you save on your next multifamily project while delivering long-term benefits for owners and occupants. 

A Nashville Builder’s Firsthand Account of Leaving OSB Behind

For contractors and builders, discovering building materials that strike the perfect balance of performance, cost, ease of installation – and lately – product availability, is an ongoing endeavor. Building materials manufacturers who can find that sweet spot will quickly see long-term customer satisfaction coming into focus. As a manufacturer, remaining true to your core values, committed to your customers, and fixed on creating high-performance products can go a long way for those choosing you for their construction jobs.

This became reality when a Nashville-based builder was seeking alternative methods to structural sheathing for the custom homes he and his crew were building. Focused primarily in East Nashville, Michael Craddock and his son, Michael Jr., discovered Ox Engineered Products on social media as a viable alternative. Since that day, they have never looked back.

The Price Was Right

When lumber prices were sky high at the peak of the pandemic-related material shortages, Craddock came across another builder on Instagram recommending the use of OX-IS structural continuous insulation. The Craddocks’ willingness to try new materials has allowed their company to become a leading infill home builder in Nashville. In the case of OX-IS, this paid off. The product has delivered significant cost savings as well as performance enhancements to the homes he is building. When compared to his previous sheathing methods using traditional OSB with housewrap, the benefits are evident.

“The more we use OX-IS, the better we like it. It is stable in price, and performance-wise, it does a lot of things that OSB does not,” explained Craddock. “Best of all, it saves us about $3,000 to $3,500 per house compared to using OSB and housewrap.”

Craddock explained that the total lumber package for the houses that he and his crew were building increased from approximately $45,000 up to between $60,000 and $70,000 depending on the size of the home.

“The increase in lumber prices forced us to try and cut costs without compromising quality. With OX-IS, the quality is better and the cost is less,” added Craddock. “I would change lumber companies today if my current supplier stopped offering OX-IS.”

Navigating Nashville Building Codes

In March 2021, a handful of Tennessee counties adopted new residential building codes set by the International Energy Conservation Code (IECC). The move was from the IECC’s 2012 standards to the code’s 2018 benchmarks, which requires all residential construction to meet a minimum insulating R-value of R-20. With structural continuous insulation such as OX-IS, this is a much easier target to hit for Nashville builders.

OX-IS is offered in three thicknesses (0.5˝, 1˝, and 1.70˝) that each equate to different thermal R-values ranging from R-3 to R-10.

 In order to meet the required R-20 in Nashville, Craddock’s team uses 1˝ OX-IS (R-6) and blow-in cellulose insulation (R-13.75). OX-IS is a continuous insulation product with no thermal breaks, so an additional R-2 is added. This means that homes built by M Squared Homebuilders are actually surpassing the R-value requirement by choosing OX-IS.

 Using OX-IS on one of their recent builds, M Squared Homebuilders conducted a blower door test, which is used to determine how much air is entering or escaping the home. The results were in the top 1%. The home scored an ACH50 rating of 2.54. For comparison, an ACH50 rating between 5.0 and 10.0 is a moderate rating – not airtight but not leaky either. Anything less than 5.0 equates to a tight house, and OX-IS helped Craddock achieve an impressive 2.54.

Sold!

Demand for new housing remains high, and Craddock noted that high-quality homes sell quickly in the Nashville area

“People line up to buy houses here. We are committed to building the best homes we can build, and Ox is helping us do that right now,” added Craddock. “It is really rewarding to find a product like OX-IS that is code-compliant, eliminates thermal break, and doesn’t cost an arm and a leg.”

  Choosing OX-IS helps Craddock and his team meet some of the most stringent building code requirements in the country, but the product also eases the burden for his framing crew. Craddock explained that typically construction crews will build a wall on the ground and stand it up. However, the wall becomes much too heavy to lift and stand in place if OSB is installed while the framing is still on the ground.

 “OX-IS makes installation easier, too. Now we can build the framing for a wall, put the product on, and stand it right up,” said Craddock.

Craddock concluded by reiterating how passionate he is about using OX-IS as opposed to OSB moving forward.

“I don’t care if at some point OSB becomes half the price of OX-IS,” Craddock reflected. “We are not going back to it. We are absolutely sold on OX-IS.”