2009 Tax Benefits from building green
Last Post 02 Jun 2009 07:11 PM by dmaceld. 5 Replies.
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cscmtpUser is Offline
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26 May 2009 12:47 PM
Hi everyone. I'm new to the forum, and am getting ready to build a new house as soon as next month. My father and I have been looking at research on ICF, and want to learn about any of the tax benefits from building green this year. Does anyone have any information on this? We want to be as green as possible, but also must stay within our budget (we have a great carpenter that we should be able to build for around 100 a sq ft.) We will be building a 28x52 wall foundation, with 10 ft walls (basement) in the NC Mountains (Plumtree, NC 28664) Thanks in advance for any help/suggestions!

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26 May 2009 01:31 PM
The tax incentives are here http://www.energystar.gov/index.cfm?c=products.pr_tax_credits but you won't like what you find. Most of them subsidize improvements of existing homes. Nor do owner/builders qualify for a $2,000 builder credit. New construction does qualify for solar, geo, wind and fuel cells.

The thinking, apparently, is that energy codes suffice to make new construction efficient, and that carrots are best reserved for owners of existing homes.
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26 May 2009 01:32 PM
Well that's a bummer to learn, but I'm glad to know, thanks Toddm!
dmaceldUser is Offline
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26 May 2009 11:08 PM
Your builder can get the $2000 credit. You will have a builder doing the project, or at least consulting and backing you up, right? You undoubtedly will need one in order to get financing, unless you're self financed the whole way.

As has been mentioned, you as a homeowner, can only get credits for improvements. If you do have a builder, and if he wants to pursue getting the $2000 you will have to meet the requirements for Energy Star or HERS. This requires participation by an authorized auditor/inspector from the planning stage forward. He'll have to do periodic inspections along the way. You can't get either rating after the fact.

Even a retired engineer can build a house successfully w/ GBT help!
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31 May 2009 04:47 PM
I don't understand the reasoning behind the 2009 clarification of tax law in this matter. If you buy an energy efficient house from a builder, which proper documentation, he can claim the $2000 tax credit and pass the net savings (after deducting the HERS inspection fees) on to you. But, if you build the house yourself as the owner, you don't qualify for the credit. Where is the difference in incentive? If the IRS would just credit me at tax time for the cost of the HERS inspections (I was quoted $600), I would opt for the Energy Star certification. As is, I dropped my plans to do so. What am I missing?
dmaceldUser is Offline
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02 Jun 2009 07:11 PM
Posted By Clark on 05/31/2009 4:47 PM
I don't understand the reasoning behind the 2009 clarification of tax law in this matter. If you buy an energy efficient house from a builder, which proper documentation, he can claim the $2000 tax credit and pass the net savings (after deducting the HERS inspection fees) on to you. But, if you build the house yourself as the owner, you don't qualify for the credit. Where is the difference in incentive? If the IRS would just credit me at tax time for the cost of the HERS inspections (I was quoted $600), I would opt for the Energy Star certification. As is, I dropped my plans to do so. What am I missing?

Who builds the vast majority of homes, owner/builders or contractors? Who needs prodding the most to move toward energy efficient construction? Who is focused almost solely on the profit margin of the completed project? Who has the greater lobbying power on Capitol Hill? Reasoning??? No one ever suggested there is reasoning behind what Congress does, or doesn't do!!!!!!

What you may be missing is an understanding of how Congress works, or doesn't work!

Be aware that owner/builders are such a small segment of the housing industry that when it comes to national policy they don't really exist.
Even a retired engineer can build a house successfully w/ GBT help!
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