Tax Credit

The tax credit is effective January 1, 2006 and expires on December 31, 2007.

Existing Homes

• A 10% cost based credit up to $500 goes to homeowners to improve the energy efficiency of existing homes by December 31, 2007.
• A tax credit up to $2,000 to the home owner on projects that reduce energy consumption in existing homes by at least 50% in "comparison to the original condition of the building."

New Homes

• Up to $2,000 credit for builders to build energy efficient homes. $1,000 credit applies to new homes that are at least 30% more efficient than a home built under the 2003 International Energy Conservation Code standards and a $2,000 credit for homes at least 50% above the code.
• $1,000 for manufactured homes that are 30% more efficient than the International Energy Conservation Code or "meets the requirements established by the Administrator of the Environmental Protection Agency under Energy Star Labeled Homes program.

Commercial Buildings

• Deduction for commercial buildings reducing their energy by 50%. The maximum deduction is $1.60 per square foot of the building.

The legislation is posted on the Senate Energy Committee's web site at http://energy.senate.gov/public/_files/ConferenceReport0.pdf