Green home building can add 20% to 30% in additional costs as opposed to traditional construction. From a financial standpoint those considering green home building should weigh the dollars saved from energy efficiency and tax credits vs. the additional costs to build green. While financial incentives may not be the main point for most green consumers, they do play a major role in determining your construction budget. It is important to remember that green home building is not an all or nothing decision. One may choose which features best suit their objectives and budget.
The Energy Policy Act of 2005 provides a variety of tax credits for homeowners, businesses, and manufacturers for purchase of energy-efficient equipment, completion of new energy-efficient buildings, and improvements to existing buildings. If you are interested in learning more about tax credits for green home building explore these resources. Tax form 1040 to includes a line for energy tax credits, in the tax credit section, and will issue regulations early in 2006 specifying what energy efficiency equipment and improvements to existing buildings or new building designs qualify for the credits. The Energy Efficiency and Renewable Energy Information Center hotline is collecting information and will be updating information on the tax credits as it becomes available. You can reach them at 1-877-337-3463. For specific tax advice, of course, please consult your tax preparer.
The U.S. Department of Energy’s REScheck and COMcheck software tools cannot be used to determine percent savings to receive the tax credits described in the Energy Policy Act. These tools are designed solely for energy code compliance. The “percent improvement” provided for envelope (COMcheck and REScheck) and lighting (COMcheck) are not based on a whole building or performance-based approach.
