Good news for builders! At the beginning of June, the U.S. House of Representatives passed an extension of the federal tax credit for builders of new energy efficient homes. It had expired December 31, 2009, but now may be extended until the end of December this year. The Senate now has to sign off on the extension and then it has to be approved by President Barack Obama.
If this tax credit is extended, it's all the more reason for builders to build energy efficient homes. The experts at Benton Green Energy can help builders achieve this goal. We have the latest equipment and software to certify whether new homes meet the necessary criteria. Check the Benton Green Energy web site for updates on the legislation or call us for more information, 864-271-0244.
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.
The following are the energy saving requirements that were in place when the tax credit expired the end of 2009:
Site-built homes qualify for a $2,000 credit if they are certified to reduce heating and cooling 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.
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.
Certification
The 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.
