The Internal Revenue Service (IRS) has released its final tax form for the Energy Efficient Home Credit that is included in the Energy Policy Act of 2005. The form is available online at www.irs.gov/formspubs/lists/0,,id=97817,00.html. When you reach the IRS forms page, go to 2005 Form 8908 Energy Efficient Home Credit and enter “review selected file.”

After seeking further guidance from IRS staff, the NMHC has confirmed that either the modular manufacturer or the modular builder can qualify for the $2,000 energy efficient home tax credit. The determining factor will be that whoever (manufacturer or builder) seeks the credit must have the proper documentation in their possession – particularly the certification document – that the home qualifies when applying for the credit.

President Bush signed the Energy Policy Act of 2005 into law on August 8 (P.L. 109-58). The business credit for new energy efficient homes permits builders of all homes to qualify for a $2,000 credit by building and selling homes that exceed the International Energy Conservation Code (IECC) by 50%. The Act also provides a $500 credit to consumers for energy efficiency remodeling of all homes.

This means modular homes that are built to the IECC plus 50% requirement following August 8, 2005 are eligible for the tax credit. Manufacturers will be able to accrue the credit when the home that is to be used as a residence is “acquired” beginning January 1, 2006 thru December 31, 2007.

Meeting the IECC is prescriptive, but exceeding the energy efficiency by 50% is performance based. However, it is likely DOE will provide prescriptive packages that builders can use to get to the increased level of efficiency.

For more information, contact the NMHC.