Congress Extends Tax Credit for Eligible Contractors who Build New Energy Efficient Homes

Great news for contractors who built new energy efficient homes in 2012 – as part of the recent fiscal cliff negotiations, Congress extended the 25L tax credit. The legislation provides a tax incentive for builders who can provide proof that their new home provides a level of heating and cooling energy consumption that is at least 50 percent below that of a comparable dwelling unit constructed in accordance with the 2006 IECC. The tax credit is retroactive to homes sold from January 1, 2012.

 

Builders who want to claim the $2000 tax credit should refer to IRS form 8908. For more specific information, you may refer to the 2011 documents that explain who can claim the credit and how here: http://www.irs.gov/pub/irs-pdf/f8908.pdf. Contact your tax professional to confirm eligibility and to find out if you have any other opportunities to claim credits for energy efficient modifications to your new or existing home.

 

Who is an eligible contractor? The IRS form states: “An eligible contractor is the person that

constructed a qualified energy efficient home (or produced a qualified energy efficient home that is a manufactured home). A person must own and have a basis in the qualified energy efficient home during its construction to qualify as an eligible contractor with respect to the home. For example, if the person that hires a third party contractor to construct the home  owns and has the basis in the home during construction, the person that hires the third party contractor is the eligible contractor and the third party contractor is not an eligible contractor.” If you are unsure whether or not you qualify, contact your tax professional to confirm.

 

As national concern over energy independence and conservation heightens, and the economy continues to pressure homeowners to save money wherever possible, tax incentives and utility rebates are likely to become more common. Be sure to follow proposed legislation, and occasionally check with your power and water providers to ensure you are taking full advantage of the savings available to you. And contact Atlantic Spray Systems, Inc. today to find out how an energy audit may help you establish a baseline and identify points of possible improvement so you can ensure your home is operating at maximum efficiency. We look forward to speaking with you soon!

Speak Your Mind

*