Tax Credits for New Homes
- Eligibility: These credits are available to eligible contractors who build qualified new energy-efficient homes. The homes must meet specific energy-saving requirements under the Internal Revenue Code Section 45L.
- Credit Amounts:
- For homes acquired on or after January 1, 2023, the credit can be up to $5,000, depending on the program under which the home was built (e.g., ENERGY STAR or Zero Energy Ready Home).
- Single-Family Homes: $2,500 for ENERGY STAR certification, or potentially higher if meeting additional requirements.
- Manufactured Homes: $2,500 for ENERGY STAR certification.
- Multifamily Homes: $500 for standard certification, rising to $2,500 if prevailing wage requirements are met.
Tax Credits for Existing Homes
- Eligibility: These credits are available to homeowners who make qualified energy-efficient improvements to their existing homes after January 1, 2023.
- Credit Amounts:
- Homeowners can claim up to $3,200 annually for energy-efficient upgrades, such as installing new windows, doors, or HVAC systems.
In summary, new home tax credits focus on builders meeting energy efficiency standards during construction, while existing home credits incentivize homeowners to retrofit their properties for improved energy efficiency.
Original article by NenPower, If reposted, please credit the source: https://nenpower.com/blog/how-do-the-tax-credits-for-new-homes-differ-from-those-for-existing-homes/
