Energy Efficiency Home Builder Credits

By: William Bauder, CPA, CGMA, CITP

If you read Columbus Business First, you probably noticed the article on the front page of the June 10th issue describing challenges home builders are facing in today’s marketplace.  With fewer new homes being built, fewer young people buying homes choosing to rent instead, and shrinking margins, the outlook is bleak for home builders.  However, there are some tax credits available, if you know where to look.

The federal Energy Policy Act of 2005, which had previously expired at the end of 2014, was extended by the signing of the Consolidated Appropriates Act in December 2015 to retroactively extend the bill through December 31, 2016.  The law allows for a rebate 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 (FMHCSS).

To qualify, homes must be:

  • Located in the United States;
  • Construction must be substantially completed before December 31, 2016;
  • Homes must meet the energy savings requirements outlined in the statute; and
  • Homes must be acquired from the eligible contractor after December 31, 2013, and before January 1, 2017, for use as a residence.

Site-built homes will qualify for the credit if they are certified to reduce heating and cooling energy consumption by 50% relative to the International Energy Conservation Code (IECC) 2006 and meet minimum standards established by the Department of Energy.

Manufactured homes qualify for the credit if they conform to the FMHCSS and meet the energy savings requirements of site built homes.

If you would like to learn more about this tax credit and how it can help your business, or other ways to use the tax code to your benefit, give us a call, we would be happy to assist you.