Discussion:Energy Tax Credits for New Home Construction
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Discussion Forum Index --> Tax Questions --> Energy Tax Credits for New Home Construction
| 22 February 2007 | |
| Are there any tax credits for energy worth pursuing for client who is built a brand new residence for 2006?
It looks like the credits for new construction are geared toward the builder, not the consumer, is that correct? | |
| February 23, 2007 | |
| There are other links that could be better. Hot water heaters aren't listed in either of the links you listed. | |
| February 23, 2007 | |
| I don't know if anyone on this forum knows the answer for sure if newly-constructed homes qualify the owners for any energy credits. | |
| 23 February 2007 | |
| Well, with a small fee the quality of my links will go way up!! LOL | |
| 23 February 2007 | |
| I looked into this for a client that built his own house. It looked like the only option was to claim the $2,000 credit a "builder" gets for building energy efficient homes. I saw nothing that said a "builder" had to be in the business of building homes, so anyone just general contracting the building of their own home should qualify. But..... you would have to go get the energy appraisal done by a certified appraiser and hope that the house meets all those rules to end up getting the $2k credit. I was told that the energy appraisal could cost around $500. Since my client didn't know if the whole house would meet the rules to qualify for the $2K credit, they passed on the whole deal. | |
| 23 February 2007 | |
| I've read the act and I say new construction does qualify! It's residential energy property. | |
| 23 February 2007 | |
| Jctmstx, so you are thinking that if someone builds their own house (i.e. doesn't use a general contractor who would supposedly claim the $2,000 builder credit), then they can claim the furnace, water heater , etc for the RESIDENTIAL ENERGY PROPERTY part of the credit? But what about the windows/doors/insulation - the QUALIFIED ENERGY EFFICIENCY IMPROVEMENT part of the credit? Sounds like that part of the credit is just for "improvements". Would you say you can't claim credit on those components of the new house? | |
| 25 February 2007 | |
| From reading the instructions to the 5695, it implies the purchaser of the new home can take the credit. | |
| 25 February 2007 | |
| See Notice 2006-26. The qualifying property must be installed in or on a dwelling unit which, at the time of installation, is owned and used by the taxpayer as the taxpayer's principal residence (within the meaning of ยง 121).
Therefore, to get the credit on new construction, the installation would have to occur after the taxpayer moves into the home. | |
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