HealthyBuilt Homes

Homeowners are eligible for federal tax credits for upgrading the energy efficiency of their existing homes. Currently there are no residential energy efficiency state tax credits, but there is an active bill in the NC Legislature entitled the "NC 2006 Energy Independence Act," which would give state tax credits to both homeowners and homebuilders for new and renovated certified energy efficient homes. In the bill, a home certified to meet the ENERGY STAR standard would receive one level of credit and a home certified to meet the NC HealthyBuilt Homes standard would receive a higher level of tax credit. The federal existing home tax credit for energy efficiency is worth up to $500 to a homeowner making specific energy efficiency improvements to a building shell, HVAC and water heating equipment between the beginning of 2006 and the end of 2007. A homeowner can receive a credit of 10 percent of the purchase price of energy efficient exterior windows (up to $200), 10 percent of the purchase price of insulation, exterior and storm doors, or light colored metal roofs (up to $500), and up to $300 for energy efficient central air conditioner, heat pump, or water heater. The final option for the retrofit tax credit is up to $150 toward the purchase price of an energy efficient furnace or boiler. Homebuilders are eligible for a $2,000 new home credit for qualifying energy efficient homes. For a home to qualify for this credit it must be shown that the home is expected to use at least 50 percent less energy to heat and cool than if the home were built to just meet the 2004 International Energy Conservation Code (IECC). This credit must be third party certified by a Home Energy Rater. See the NC Solar Center's Professional Directory and search under Energy Raters or look for raters at the Energy Star website. Residents of North Carolina can also take advantage of the long-running state tax credit for residential renewable energy systems. This tax credit provides 35 percent of the purchase price of the system, including installation, back to the homeowner. Like the federal credit, there are caps on the size of credit a homeowner can receive, but the size of the cap varies between technologies. For more detailed information and the needed tax forms visit the websites below: www.ncsc.ncsu.edu/information_resources/fact_sheets.cfm (includes NC tax forms) www.healthybuilthomes.org (NC HealthyBuilt Homes Program) www.ase.org/taxcredits (includes IRS guidance) www.energytaxincentives.org/tiap-consumers.html www.dsireusa.org (Database of State Incentives for Renewable Energy - DSIRE)

For further information, please see http://www.ncsc.ncsu.edu/news/news_story.cfm?ID=257.

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