An energy credit is a tax credit - a payment made on the taxes you owe. A tax credit offers you a larger impact on your tax liability than a deduction because it is deducted from the tax money that is owed as opposed to deducting the money from the total liability. Home builders across the United States are eligible for a $2,000 tax credit per sold home. These credits will be doled out using the guidelines set up by the Department of Energy's Energy Star standards for builders that can meet the standards.
Site Built Homes
New homes have to be energy efficient homes that exceed the Energy Star standards set by the new Department of Energy for energy efficiency. The Energy Star standards are a set of guidelines that were implemented in 2004 as part of an incentive to reduce energy consumption. Site built homes are eligible to receive the credit as are manufactured homes (see below). For homes that are site built they must be built in the United States and have energy efficiency ratings of at least 50% over the guidelines that are set forth in the 2004 Energy Star Regulations. Only homes that have been built after 2005 are eligible for the tax credit. At least one fifth of the energy savings must be derived from the area of the home that is heated/cooled. The homes must pass using Department of Energy software and also have to be inspected by an independent third party inspector certified by the DOE. The home has to be ready for occupancy by December 31 of the year construction began.
Manufactured Homes
Manufactured homes that are built have to have an energy efficiency rating of at least 30% over the 2004 Energy Star guidelines; the available tax credit for manufactured homes is $1000 per home. The Manufactured homes have to have been manufactured after 2005 and be certified using the same Department of Energy Software and third party inspection is also required by a certified DOE inspector as site built homes. The manufactured home has to be delivered and setup and ready for occupancy no later than December 31 of the year it was manufactured.
How Can a Home Qualify?
To qualify a building for the credit certain materials can be used. Energy efficient windows, well constructed foundations, heavily insulated attics, walls, ceilings. Using alternate energy sources can also qualify as long as the rating meets that 50% mark for site built and 30% mark for manufactured. With newer materials available today and newer technology used in building these marks are not that hard to reach.
Other Credits
The tax credit has been extended through 2016. Specific energy credits through the federal government are not available to builders of new homes yet but the credits are available to the home owner. Some states offer energy credits to new home builders for implementing solar and other alternate energy sources in new home construction, an interested party will have to check with the state that they do business in to check out the regulations.
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