Energy Credits New Home Builders Must Know About

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