This Energy Efficient Home Tax Credit, A.K.A. EPAct Tax Credit, expired as of December 31st, 2021. This credit has expired and then got extended at various times since it was created back in 2005. Recent updates from our industry leaders on the Energy Efficient Home Tax Credit renewal are questionable. RESNET and other industry allies are in the process of creating a new proposed credit to pitch to Congress. This is only in the beginning stages at this point and the likelihood of it getting passed is unknown. We will be following this topic closely and post future updates on our site.
How does a home qualify for the Energy Efficient Home Tax Credit?
A home can qualify for this credit if it meets the 50% energy efficient standard. The house has to be certified to have an annual level of heating and cooling energy consumption at least 50% below the annual level of a comparable dwelling unit and has building envelop improvements that account for at least 1/5 of the 50% reduction in energy consumption. The home has to be rated by a 3rd party rater, such as Redfox Inspections, to verify whether or not the home passes. Redfox Inspections can evaluate whether or not the home will pass prior to it being started. We can model the home into our software from blue prints and specs to determine if the home passes. If it does not pass, we can help you make adjustments prior to breaking ground. There are two site visits by Redfox Inspections, one at pre-drywall and a final one once the home is completed. The final site visit will include some testing to verify final certification. This process is called a HERS Index Rating.
What if the home is already built or in the process of being built?
That is a great question! Homes that are already being constructed or already finished (even if the homeowner is already moved in) can still qualify for this credit. The home will have to be modeled into our software as well as a site visit, which includes testing and verification. If the home passes then you will be able to qualify for the credit. The benefit of starting this process prior to the home being started is to allow for adjustments if the home does not qualify.
Many builders in West Michigan are building energy efficient homes and not taking advantage of this opportunity. You would be surprised at how close you could be to getting this credit!
Manufactured homes that meet a 30% reduction in energy can also qualify for a $1,000 tax credit.
***This is NOT tax advice. We recommend you consult with your tax professional before making any decisions regarding this credit and how it may fit into your tax situation. Redfox Inspections of Michigan can ONLY qualify a home for this tax credit.***
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