Form 8908 - Tax Credit for Energy Efficient Homes

[John Blackman]

Is anyone aware of how to qualify a home you built as energy efficient via this irs form?

http://www.irs.gov/pub/irs-pdf/f8908.pdf

My tax accountant mentioned this to me and this is the first I've heard of it. Austin does require you to pass an energy audit in order to get your certificate of occupancy but those standards may not meet the same federal guidelines.

Here is the key text from the pdf:

50% energy efficient standard. The credit is $2,000 for a dwelling unit that is certified to have an annual level of heating and cooling energy consumption at least 50% below the annual level of heating and cooling energy consumption of a comparable dwelling unit and has building envelope component improvements that account for at least 1/5 of the 50% reduction in energy consumption. A manufactured home meeting the requirements described above and the Federal Manufactured Home Construction and Safety Standards (FMHCSS) requirements (see 24 C.F.R. part 3280) is also eligible for the $2,000 credit.
Comparable dwelling unit. A comparable dwelling unit:

• Is constructed in accordance with the standards of chapter 4 of the 2006 International Energy Conservation Code as such Code (including supplements) was in effect on January 1, 2006,

• Has air conditioners with a Seasonal Energy Efficiency Ratio (SEER) of 13, measured in accordance with 10 C.F.R. 430.23(m), and

• Has heat pumps with a SEER of 13 and a Heating Seasonal Performance Factor (HSPF) of 7.7, measured in accordance with 10 C.F.R. 430.23(m).

All of our AC and heating units are SEER rated 13 or higher, and I found the construction codes for the IECC chapter 4 and in reading them we appear to meet all of those requirements. However I don't have a piece of paper that says we passed them all from a 3rd party inspector. I have the energy audit from a 3rd party inspector for the City of Austin's requirements.

Does anyone know if such inspectors exist, how much they cost, or what proof is required to claim this deduction? This could be a significant tax savings and I think it's a great federal program to make sure you build efficient homes. I know I am certainly incentivized to get the credit assuming it doesn't cost me more than the price of the tax savings.

Thanks in advance,