Energy Efficient New Homes Tax Credit (Corporate)

 

Incentive Type

Corporate tax credit

Applicable Sectors

Builder/developer, construction

Eligible Technologies

Comprehensive measures/whole building

Amount

$1,000 to $2,000, depending upon energy savings and home type.

Maximum Incentive

$2,000

Program Start Date

Jan. 1, 2006

Program Expiration Date

Dec. 31, 2009

More Information

www.irs.gov/businesses/small/industries/article/0,,id=155445,00.html

Summary

This tax credit applies to new residential homes completed by Dec. 31, 2009. At this point, the credit is not available for new homes constructed after that date. Check this page in the future or refer to the IRS for any developments in the renewal of this credit.

The federal Energy Policy Act of 2005 established tax credits of up to $2,000 for builders of all new energy-efficient homes. The tax credit has been extended twice and most recently was extended until Dec. 31, 2009.

The home qualifies for the credit if:

  • It is located in the United States.
  • Its construction is substantially completed after Aug. 8, 2005.
  • It meets the energy saving requirements outlined in the statute.
  • It is acquired from the eligible contractor after Dec. 31, 2005, and before Jan. 1, 2010, for use as a residence.

To qualify for this tax credit, the home must be certified to reduce heating and cooling energy usage by 50 percent relative to the International Energy Conservation Code, and meet minimum energy-efficiency standards established by the Department of Energy.

Certain requirements for reduced energy consumption through building envelope improvements may also apply.

Manufactured can also qualify if they conform to certain Federal Manufactured Home Construction and Safety Standards.

The Internal Revenue Service has issued guidance to provide information about the certification process that a builder must complete to qualify for the credit.

Contact

    Public Information - IRS
    U.S. Internal Revenue Service
    1111 Constitution Avenue, N.W.
    Washington, DC 20224
    Phone: (800) 829-1040
    Website: www.irs.gov