Energy Efficient Homes Tax Credit extended by US Congress
US Congress recently announced that the Energy Efficient Tax Credit has been extended. The news is a fantastic result for any homeowners and builders looking to include energy efficient insulation in their homes.
The legislation changes the base of the tax credit from the 2003 to the 2006 International Energy Conservation Code enabling builders to take advantage of the $2000 tax credit. The credit was extended through to December 31st 2013 as part of the compromise legislation to avert the fiscal cliff.
The legislation also extended the tax credit for US homeowners to purchase qualified products to improve the energy efficiency of their existing homes. Icynene spray foam insulation is one such product that qualifies for the tax credit since it helps noticeably reduce heating and cooling bills and helps minimize excessive energy consumption.
Energy efficiency is a top consideration among building owners. Energy efficient insulation means significant reductions in greenhouse gas emissions as well as the potential for LEED credits. Those interested in understanding the credit should note:
- IRS Form 8908 is the form to claim the $2000 tax credit for homebuilders selling an energy-efficient home. See http://www.irs.gov/pub/irs-pdf/f8908.pdf and associated instructions, as published in 2011.
- The tax credit is retroactive to homes sold from January 1, 2012.
- The builder must provide a level of heating and cooling energy consumption that is at least 50 percent below that of a comparable dwelling unit constructed in accordance with the 2006 IECC.
- For building envelope residential requirements per 2006 IECC, see www.energycodes.gov/sites/default/files/becu/2006_iecc.pdf
Icynene spray foam insulation offers an array of immediate and long-term benefits and can receive other tax incentives unique to your own state.