The Energy Incentives Act of 2005 contains a provision for home contractors. Beginning next year, a new tax credit is available to home construction contractors for qualified new energy-efficient homes acquired after December 31, 2005 and before January 1, 2008. If you are an eligible contractor, you might be allowed either a $2,000 or $1,000 tax credit for each qualified new energy-efficient home that you build and sell to an individual for use as a principal residence.

An eligible contractor is a person who constructs a new energy-efficient home, or a manufacturer that produces a qualified new energy-efficient manufactured home. To be a qualified new energy-efficient home:
 

	The home must be located in the United States;
	Its construction must be substantially completed after the date that the statute creating this credit was enacted; and
	It must meet the energy saving requirements.

The term “construction” includes substantial reconstruction and rehabilitation.

The $2,000 credit is available if the home meets the following energy-saving requirements:
 

1. The home must be certified to have a level of annual heating and cooling energy consumption that is at least 50 percent below the annual heating and cooling energy consumption of a comparable dwelling unit, and

2. The home must be certified to have building envelope component improvements that account for at least one-fifth of that 50 percent improvement in heating and cooling energy consumption.