Energy savings and tax credits with ceiling solutions

Thanks to the recent innovation of pairing mineral fiber ceiling panels with phase change material (PCM) technology, architects, designers, facility managers, and other key players in construction and renovation projects are rethinking how ceilings can support environmental objectives, especially energy savings.

As a space warms—typically from occupation during the day or from sunlight—the crystalized PCM encased in the ceiling gradually dissolves, passively cooling the space while it absorbs heat. As the room cools at night or during low-occupancy times, the PCM releases the stored heat and re-solidifies. In this way, heat transfers naturally into and out of the ceiling panels at 72° F, allowing for effective cooling and heating alike.

Energy savings of up to 15% 

PCM ceiling panels support thermal comfort with no mechanics, energy expenditure, or fossil fuels. Ceiling panels with PCM technology can reduce a building’s energy costs and consumption by as much as 15%.* By enabling energy savings, these ceilings offer advantages such as:

• Reduced reliance on fossil-fuel-powered HVAC systems
• Less wear on HVAC systems, which is critical for facilities with aging systems and strict budgets
• Improved thermal comfort, especially helpful in changing climates or environments with daily hot-cold fluctuations

Another benefit is that the panels enhance indoor environmental quality with features like sound blocking and absorption. They also offer easy installation and require little to no maintenance. Additionally, energy-saving ceiling products fit into the thermal comfort portion of the WELL Building Standard and can contribute to energy and atmosphere credits for LEED certification.

Up to 50% in tax credits

While the above advantages can work to help a facility realize ongoing savings, a project owner can get a head start on cost benefits because PCM ceiling panels qualify for certain tax credits. Projects utilizing energy-saving ceiling panels may qualify for Investment Tax Credit (ITC) 48E, which was part of the Inflation Reduction Act of 2022 and offers tax incentives for investments in clean energy technologies. Because of their thermal energy storage properties, most projects using PCM ceiling panels may qualify for a federal tax credit of up to 40%. An additional 10% tax credit may be available if the project is in a location designated as an energy community, such as an EPA Brownfields site or a fossil-fuel-dependent community.

When investing in energy-saving ceilings for a project, consider a solution that helps you maximize tax savings opportunities. For example, if a project uses Armstrong’s Templok Energy Saving Ceilings, the ceiling panels and associated grid, trim, and labor costs all qualify for tax credits under ITC 48E. Moreover, these panels are made in the United States from domestic and global materials meeting a requirement for additional tax savings.**

Qualifying energy-saving ceiling projects span multiple sectors, including nonprofits, education, and the private and public sectors. The list of ideal projects is extensive and includes K–12 schools, public and private universities, dorms, museums, hospitals, nonprofit offices/facilities, military bases, courthouses, faith-based buildings, convention centers, and arenas. In addition to getting information from the ceiling manufacturer, it’s important to consult your tax advisor to confirm if your project qualifies for savings.

More efficient, more sustainable

Thanks to tax credits, the use of energy-saving ceilings could make your next construction or renovation project more affordable. And with PCM technology helping reduce energy costs, the impact on your bottom line won’t stop there.

Learn more about energy saving ceilings and related tax credits by visiting
armstrongceilings.com/energysavingceilings.  

*Cooling energy savings according to research estimates measured in lab tests. Results may vary. 

**This article lists various federal tax credits and deductions that your project may qualify for when purchasing Armstrong Templok Energy Saving Ceilings. Please consult your own tax attorney or advisor.

LEED® is a registered trademark of the U.S. Green Building Council; WELL Building Standard is a trademark of the Well Building Institute.

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