Green Building Incentives Federal Tax Credits for New Homes Information courtesy of RESNET: Under the provision for energy efficient homes, an eligible contractor who constructs a qualified new energy home may qualify for a credit of up to $2000.00.  The credit is available for all new homes, including manufactured homes constructed in accordance with the Federal Manufactured Homes Construction and Safety Standards.   The home qualifies for the credit if It is located in the United States Its construction is substantially completed after August 8, 2005. It meets the statutory energy saving requirements, and It is acquired from the eligible contractor after December 31, 2005 and before January 1, 2008, for use as a residence. In general, to meet the energy saving requirements, a home must be certified to provide a level of heating and cooling energy consumption that is at least 30 to 50 percent in the case of manufactured homes, and 50 percent for other homes below that of a comparable home constructed in accordance with the standards of the 2004 Supplement to the 2003 International Energy Cons a level of heating and cooling energy consumption that is at least 10 percent below that of a comparable home. The program has been extended through 2008. Summary:  The Federal tax credit was mostly ignored in New Mexico until the state tax credit became available.  Now, builders who are earning the state tax credit are inspired to do the extra work to qualify for the Federal tax credit.  A HERS Rating is required in order to qualify for either the State or Federal tax credit. NEW MEXICO’S SUSTAINABLE BUILDING TAX CREDIT: We now have a generous state tax credit for builders of sustainable homes. Here is the link to the final version of the bill: http://legis.state.nm.us/Sessions/07%20Regular/final/SB0463.pdf Please note that Senate Bill 463 contains six different tax credits.  The Sustainable Building Tax Credit begins on pages 21 through 31 for Personal Income Tax, and repeats on pages 31 through 40, for Corporate Income Tax. For Build Green New Mexico “GOLD level”, the maximum possible credit is $11,000.00 per house. Rating System/Level Qualified Occupied Sq. ft Tax Credit per SF       Build Green NM GOLD First 2000 Next 1000 $4.50 $2.50