IRS Announces Package of Guidance on Energy-Efficient Home Credit for Builders
FEB. 21, 2006
IR-2006-32
DOCUMENT ATTRIBUTES
- Institutional AuthorsInternal Revenue Service
- Cross-Reference
- Code Sections
- Subject Area/Tax Topics
- Industry GroupsEnergyReal estate
- Jurisdictions
- LanguageEnglish
- Tax Analysts Document NumberDoc 2006-3436
- Tax Analysts Electronic Citation2006 TNT 35-13
Citations: IR-2006-32
IRS Provides Guidance on Energy Credit to Home Builders
Feb. 21, 2006
WASHINGTON -- The Internal Revenue Service today provided guidance regarding the energy efficient homes credit available under the Energy Policy Act of 2005. Under the new provision, an eligible contractor who constructs a qualified new energy efficient home may qualify for a credit of up to $2,000. The credit is available for all new homes, including manufactured homes constructed in accordance with the Federal Manufactured Homes Construction and Safety Standards.
The home qualifies for the credit if:
It is located in the United States;
Its construction is substantially completed after August 8, 2005;
It meets the statutory energy saving requirements, and
It is acquired from the eligible contractor after December 31, 2005, and before January 1, 2008, for use as a residence.
In general, to meet the energy saving requirements, a home must be certified to provide a level of heating and cooling energy consumption that is at least 30 to 50 percent in the case of manufactured homes, and 50 percent for other homes below that of a comparable home constructed in accordance with the standards of the 2004 Supplement to the 2003 International Energy Conservation Code. It must also have building envelope component improvements providing a level of heating and cooling energy consumption that is at least 10 percent below that of a comparable home. Manufactured homes can also qualify for the credit by meeting Energy Star standards.
Site-built homes qualify for a $2,000 credit if they reduce energy consumption by 50 percent relative to the International Energy Conservation Code standard.
Manufactured homes qualify for a $1,000 or $2,000 credit depending on the level of energy savings achieved.
The guidance provides 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.
DOCUMENT ATTRIBUTES
- Institutional AuthorsInternal Revenue Service
- Cross-Reference
- Code Sections
- Subject Area/Tax Topics
- Industry GroupsEnergyReal estate
- Jurisdictions
- LanguageEnglish
- Tax Analysts Document NumberDoc 2006-3436
- Tax Analysts Electronic Citation2006 TNT 35-13
