Tax Credits for ENERGY STAR®
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Tax Credits for Home Builders:

The Internal Revenue Service (IRS) has provided the following guidance regarding the tax credits for constructing energy efficient new homes available under the Energy Policy Act of 2005:

• IRS Notice 2006-27 provides guidance for the credit for building energy efficient homes other than manufactured homes.
• IRS Notice 2006-28 provides guidance for the credit for building energy efficient manufactured homes.

The tax credit information provided below is based on information contained in the Energy Policy Act of 2005. The IRS guidance provides specific information that home builders and housing manufacturers can rely on to take action to claim the tax credits. ENERGY STAR will study the IRS publications and provide updates as necessary.

Home builders are eligible for a $2,000 tax credit for a new energy efficient home that achieves the Energy Star standards for heating and cooling over the 2004 International Energy Conservation Code (IECC) and supplements. At least 1/5 of the energy savings must come from building envelope (heated/cooled living spaces within the house)improvements.

Tax Credits for Consumers:

Home Improvements
Tax credits are available for many types of home improvements including adding insulation, replacement windows, and certain high efficiency heating and cooling equipment. See chart. The maximum amount of homeowner credit for all improvements combined is $500 during the two year period of the tax credit. This tax credit applies to improvements made from January 1, 2006 through December 31, 2007.

Tax Credits for Home Builders:

Home builders are eligible for a $2,000 tax credit for a new energy efficient home that achieves 50 percent energy savings for heating and cooling over the 2004 International Energy Conservation Code (IECC) and supplements. At least 1/5 of the energy savings must come from building envelope improvements.

Save Energy this Winter with Help from ENERGY STAR

The average American household spends $1,500 annually on energy bills…a number that may go up as much as 50% this year.

• Almost half of that energy goes to heating and cooling your home.
• Lighting and appliances represent about a quarter, and
• Home electronic products like computers, TVs and cell phone chargers take a significant and growing share of what is left.

Each of us can take action today to reduce energy use at home, while still staying comfortable. These small steps, taken together, can make a big difference in terms of lowering our national energy bill and reducing greenhouse gas emissions.