Energy Credit and New Home Construction

[Ray]

I have just read the tax credit for energy efficient home improvements and can't find the answer for an upcoming client.

They have just built a new home and of course installed the energy efficient windows and storm doors.

Does the new home qualify for the 5695 energy credit the same as an existing home?

That also posses the question - (that hasn't come up yet) what about the insulation.

My instincts tell me that a new home does not qualify but I can't find it in writing.

Thanks

Ray

[Jesse]

Check out this link

http://www.energystar.gov/index.cfm?c=tax_credits.tx_index

What is included in the Tax Credit?

Tax Credit:30% of cost up to $1,500
Expires: December 31, 2010
Details:Must be an existing home & your principal residence. New construction and rentals do not qualify.

[Ray]

Thank you that was exactly what I was looking for.

Ray

[spanel]

I would happen to disagree... from the IRS form 5695.


Who Can Take the Credit
You may be able to take the credit if you made energy
saving improvements to your home located in the
United States in 2008. For credit purposes, costs are
treated as being paid when the original installation of
the item is completed, or in the case of costs
connected with the construction or reconstruction of
your home, when your original use of the constructed
or reconstructed home begins. If less than 80% of the
use of an item is for nonbusiness purposes, only that
portion of the costs that are allocable to the
nonbusiness use can be used to determine the credit.

[Jesse]

But more than one credit is involved with form 5695. Geothermal, Wind Turbines, and Solar Energy can be taken on new construction.

The Biomass, A/C, Heating, Insulation, Roofs, Windows and Doors must be to an existing home. New construction does not qualify. I thought there was a release but I'm too tuckered to look tonight.

Maybe someone else can confirm or dispute?

[spanel]

I read the energy star website where it says its not allowed... but I cant find anything on the actual IRS form or TTB where it says its not?

Any other Opinions?

chris

[taxcraft]

Energy Credit

I believe the spirit of the law is to upgrade our country's older existing housing stock and reduce our energy costs. Newly constructed homes are expected to have the latest innovations and do not need upgrading.