Software for Energy-Efficient New Home Tax Credits

In 2005 congress passed, and the President signed into law, the 2005 Energy Policy Act (EPAct). One provision of the 2005 EPAct is a $2,000 per home business tax credit for builders who build energy efficient homes. The homes must be sold in 2006 or 2007 and use no more than 50% of the energy of a home built to 2004 International Energy Conservation Code (IECC) standards. To show that the home will perform to this level, it must be analyzed using IRS-approved software, then inspected, tested and approved by a Certified HERS Rater.

Architectural Energy Corporation's REM/Rate™ home energy rating software has been approved by the IRS and the Residential Energy Services Network ( RESNET ) for use in qualifying homes for the energy-efficient new home tax credit. The REM/Rate™ 2005 EPact Tax Credit Report [65kb ] meets the documentation requirements of IRS Notice 2006-27 .

REM/Rate™ is available to accredited home energy rating system (HERS) Providers and certified Raters. Being the most widely used HERS software tool in the country, REM/Rate™ is already used by many of the Raters throughout the country. To find a Certified HERS Rater in your area, visit RESNET's Directory of Certified Raters .

AEC's REM/Design™ software is similar to the REM/Rate™ software in that it includes the 2005 EPact Tax Credit Report [65kb ] . And while in REM/Design™ the report is marked "Draft", it can be used to determine whether a home's intended design qualifies for the tax credit. In the end, the home will have to be inspected and approved by a Certified HERS Rater, but REM/Design™ allows designers, architects, builders, engineers and others determine how to meet the performance threshold required for the tax credit. REM/Design™ is perfectly suited for those who want to determine for themselves or their customers whether the homes they are building can meet the tax credit requirements.

Disclaimer: Anyone planning on taking the 2005 EPAct energy efficient new home tax credit should consult their tax professional. This information is not intended to be, and should not be construed as, tax advice.