Tuesday, March 17, 2009

Tax Credits for New Green Homes

Tax credits for new green homes are better than ever! A 30% tax credit (including labor and installation), with no upper limit, is available for consumers building new homes (through 2016) for:
  • Photovoltaics
  • Solar Water Heaters
  • Geothermal Heat Pumps
  • Small Wind Energy Systems
  • Fuel Cells (for primary residences only)
The credit for photovoltaic, solar water heaters, geothermal heat pumps, and small wind energy systems does not have to be for your principal residence; so, rental units, second homes, etc... are all eligible.

For more information, see
2008 IRS Form 5695 to help you further with this provision.

There is a $2,000 tax credit for building a new energy efficient home, but it is ONLY available to "eligible contractors"; therefore, owner/builders may not receive the builder tax credit unless employed as eligible contractors.

See Energy Star and the IRS for more information.