Tax IncentivesCommercial & Industrial CustomersEnergy-Efficient New Homes Tax Credit for Home BuildersLast DSIRE Review: 01/22/2008 Incentive Type:Corporate Tax Credit Eligible Efficiency Technologies:Comprehensive Measures/Whole Building Applicable Sectors:Construction Amount:$1,000-$2,000, depending on energy savings and home type Maximum Incentive:$2,000 Website:www.irs.gov/businesses/small/industries/article Authority 1:Date Enacted:8/8/2005 Effective Date:1/1/2006 Expiration Date:12/31/2008 Summary:The federal Energy Policy Act of 2005 established tax credits of up to $2,000 for builders of all new energy-efficient homes, including manufactured homes constructed in accordance with the Federal Manufactured Homes Construction and Safety Standards. Initially scheduled to expire at the end of 2007, the tax credit was extended through 2008 by Section 205 of the Tax Relief and Health Care Act of 2006 (H.R. 6111). The home qualifies for the credit if:
Energy Saving RequirementsSite-built homes qualify for a $2,000 credit if they are certified to reduce energy consumption by 50% relative to the International Energy Conservation Code standard and meet minimum efficiency standards established by the Department of Energy. Building envelope component improvements must account for at least one-fifth of the reduction in energy consumption. The statute does not identify the specific efficiency measures eligible for the tax credit. Manufactured homes qualify for a $2,000 credit if they conform to Federal Manufactured Home Construction and Safety Standards and meet the energy savings requirements of site-built homes described above. Manufactured homes qualify for a $1,000 credit if they conform to Federal Manufactured Home Construction and Safety Standards and reduce energy consumption by 30% relative to the International Energy Conservation Code standard. In this case, building envelope component improvements must account for at least one-third of the reduction in energy consumption. Alternatively, manufactured homes qualify if they meet Energy Star Labeled Homes requirements. CertificationThe Internal Revenue Service (IRS) has issued guidance to provide information about the certification process that a builder must complete to qualify for the credit. The guidance also provides for a public list of software programs that may be used in calculating energy consumption for purposes of obtaining a certification. IRS Notice 2006-27 provides guidance for the credit for building energy-efficient homes other than manufactured homes. IRS Notice 2006-28 provides guidance for the credit for building energy-efficient manufactured homes. Click here to access IRS Form 8908: Energy Efficient Home Credit. For more information on this and other energy efficiency tax credits, visit the Energy Star web site. Contact:Public Information |
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