Propane Energy Efficient Home Credits, Why IRS Form 8908 may save you money if you are considering installing propane powered heating and cooling systems.
If you’re a builder or contractor installing propane powered heating and cooling systems in your residential projects, propane energy efficient home credits via IRS Form 8908 just may be a welcome piece of news for your business at tax time.
Energy Efficient Home Credit – do you qualify?
The Energy Efficient Home Credit allows builders and contractors to claim a credit for each qualifying energy efficient residential home sold or leased to another person during the current tax year.
If you haven’t heard about the program, now is the time to take note and consult your tax professional and download Form 8908 from the IRS web site.
According to IRS Form 8908, an eligible contractor is the person that constructed a qualified energy efficient home (or produced a qualified energy efficient home that is a manufactured home). A person must own and have a basis in the qualified energy efficient home during its construction to qualify as an eligible contractor with respect to the home.
Fifty percent energy efficient standard.
The tax credits provide examples such as a credit of $2,000 for a dwelling unit that is certified to have an annual level of heating and cooling energy consumption of a comparable dwelling unit and has building envelope improvements that account for at least 1/5 of the 50% reduction in energy consumption.
In addition, the form also states an eligible contractor must obtain a certification that the dwelling unit meets the requirements of section 45L(c)(1) from an eligible certifier before claiming the section 45L credit.