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with an annual credit of generally up to $1,200 per year.   Family New Homes Program, there is $500 tax credit. If
            The enhanced credit is allowed for qualifying property   constructed with prevailing wage, the credit increases to
            placed in service on or after January 1, 2023, and before   $2,500; $1,000 tax credit for multifamily homes certified
            December 31, 2032.                                  as DOE Zero Energy Ready Home and Zero Energy Ready
                   Appliance rebates. Rebates generally represent   Home constructed with prevailing wage, the credit increas-
            a reduction in the purchase price or cost of property, and   es to $5,000.
            the taxpayer must reduce the amount of the expenditure
            on which the taxpayer calculates the tax credit by the   Savings for Commercial Building Owners
            amount of the rebate. In general, rebates are nontaxable   The commercial building deduction was made per-
            purchase price reductions.                          manent under Section 179D by the Consolidated Appropri-
                   Under the Energy Efficient Home Improvement   ations Act of 2021 and recently extended and expanded by
            Credit: a taxpayer may not carry the credit forward. Thus, if   the Inflation Reduction Act of 2022.
            a taxpayer does not have sufficient tax liability to claim all      For the 2022 taxable year, energy efficient invest-
            or a portion of the credit in the year in which the related   ments in new and existing buildings must reduce the total
            property for which the qualifying expenditure is placed   annual energy and power costs with respect to the interior
            in service, the unused amount of the credit may never be   lighting systems, heating, cooling, ventilation, and hot wa-
            claimed.                                            ter systems of the building by 25 percent and qualify for tax
                                                                deductions up to $1.88 per square foot.
            Savings for Home Builders                                  The Inflation Reduction Act includes numerous up-
                   Like many other tax credits, the Energy Efficient   dates to the 179D deduction, which took effect on January
            Home Credit (Section 45L) was created with the Energy Pol-  1, 2023. So commercial building owners, like some of your
            icy Act of 2005 and permits eligible homebuilders and mul-  propane companies, can claim credits. For the 2023 taxable
            tifamily developers to claim a tax credit for each residential   year, buildings that increase their energy efficiency by at
            dwelling. IRA also extended the §45L Credit for homes sold   least 25% will be able to claim this deduction, with bonuses
            or leased during 2022 and provides new requirements and   for higher efficiency improvements. The Intuitive
            higher benefits for units sold or leased between 2023-2032.   accountant.com reports “Deduction levels up to $5.00 per
                   For 2022, the Energy Efficient Home Credit, resi-  square foot — The qualified deduction range for projects
            dences leased or sold in 2022, single family homebuilders   meeting prevailing wage and apprenticeship standards will
            and multifamily developers the maximum credits per dwell-  be between $2.50 and $5 per square foot, depending on
            ing unit are $2,000 per unit for new energy efficient home   the building’s energy efficiency level. For projects that do
            and $1,000 per unit for manufactured homes.         not meet prevailing wage and apprenticeship standards,
                   For 2023, single family homes, it is as follows:   the deduction level range will be between $0.50 and $1 per
            $2,500 tax credit for single family homes certified as ENER-  square foot.”■
            GY STAR Single Family New Homes Program and $5,000 tax
            credit for single family homes certified as DOE Zero Energy   Sources: Texas Propane Magazine, www.tpga.com;  IRS
            Ready Home (ZERH).                                  FS-2022-40, December 2022. Frequently asked questions
                   For 2023, manufactured homes, it is $2,500 tax   about energy efficient home improvements and residential
            credit for manufactured homes certified as ENERGY STAR   clean energy property credits | Energystar.gov Tax Credit for
            Manufactured Home National Program requirements and   Home Builders | Energystar.gov Tax Deductions for Com-
            $5,000 tax credit for manufactured homes certified as DOE   mercial Buildings | Residential Energy Tax Credits: Changes
            Zero Energy Ready Home (ZERH).                      in 2023 Congressional Research Service IN12051.
                   For 2023 and moving forward, for multifamily
            homes constructed and certified as ENERGY STAR Single



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