Can’t Miss Energy Tax Credits for Home Builders

You may be able to save some green by being green. Home builders who have constructed or renovated an energy-efficient commercial or residential property may be eligible for energy tax deductions or credits.

Have you constructed or renovated commercial property since 2006? Or have you implemented energy-efficient designs for government-owned buildings in the last four years? You may be eligible for a deduction of up to $1.80 per square foot with the 179D Energy Efficient Commercial Buildings Deduction. A building does not have to be LEED-certified to qualify. If systems were installed to reduce total annual energy and power costs by 50 percent or more, the property may be eligible for tax savings. The energy savings are measured in three main building systems:
•Building envelope
•Heating, cooling, ventilation and hot water
•Interior lighting

There’s also a tax benefit if you have  constructed or renovated low-rise multifamily properties in the last four years. Under the 45L New Energy Efficient Home Credit, producers of ENERGY STAR manufactured homes or new manufactured homes that achieve 30 percent energy savings for heating and cooling over the 2006 International Energy Conservation Code (IECC) may qualify for a $1,000 tax credit. Certain new energy-efficient homes and multifamily developments may qualify for a $2,000 tax credit per unit if they achieve a 50 percent energy savings for heating and cooling over the 2006 IECC. Be sure to discuss any potentially qualifying projects with your tax professional before finalizing your income tax returns.

Read this energy tax savings article on the Construction Today blog.