If you are a contractor or builder that builds or substantially reconstructs energy-efficient homes, you may be eligible for tax credits up to $5,000 for each home from 2023 to 2033. This credit was expanded from the previously expired credit that was equal to $2,000 per home in 2022.
The amount of credit your business could receive will depend on a couple factors including the type of home, its energy efficiency and the date your client buys or leases the home.
What builders are eligible for the credit for builders of energy-efficient homes?
In order to qualify for the credit, a builder must:
- Construct or substantially reconstruct a qualified energy-efficient home
- Own the home and have a basis in it during construction
- Sell or rent the home to an individual to use as a residence
What is considered an eligible home?
The home must also meet some requirements of a single family home. This also includes manufactured home or multifamily homes under the Energy Star programs. The home must be located in the United States, and meet applicable energy saving requirements based on home type and acquisition date.
How much is the credit for builders of energy-efficient homes?
In 2023 through 2033, the credit is worth $5,000 per home for new single-family and manufactured homes that are eligible for the ENERGY STAR program and certified by the Zero Energy Ready Home Program. While new multifamily homes are eligible for $1,000 per unit if it is part of an ENERGY STAR-eligible building and certified by the the Zero Energy Ready Home Program.
Before you can claim the credit, builders and contractors must certify that their homes meet all the requirements and fill the appropriate form with their return.
With NEW TurboTax Live Full Service Business, we enable the small business owner to be paired with a dedicated tax expert specializing in small business taxes to handle Partnerships (1065), S-corp (1120-S), and multi-member LLCs. Get matched with a dedicated small business tax expert, enjoy unlimited year-round advice and answers at no extra cost, and be confident that our small business tax experts will help you find every tax deduction and credit your business deserves.
Your Summer Travel Can Save You at Tax Time
Writing Off Your Summer: Preparing For Next Tax Season