Tax Credits: How ENERGY STAR & Zero Energy Ready Home Can Save You Money

At Desert Architect, we're committed to designing homes that are not only beautiful and functional but also environmentally responsible. We understand that building a new home is a significant investment, and we want to help you make the most of it. That's why we're excited to share how programs like ENERGY STAR and Zero Energy Ready Homes (ZERH) can lead to tax credits for contractors, and how those savings can be passed on to you, the homeowner.

What are ENERGY STAR and Zero Energy Ready Homes?

ENERGY STAR and Zero Energy Ready Homes are programs developed by the U.S. Environmental Protection Agency (EPA) and the U.S. Department of Energy (DOE) that set high standards for energy efficiency in new homes. Homes that meet these standards are not only more environmentally friendly but also more comfortable and less expensive to operate.

How do these programs benefit building contractors?

The Inflation Reduction Act of 2022 (IRA) amended Internal Revenue Code Section 45L to provide eligible contractors with a business tax credit for new or substantially reconstructed homes that meet the requirements of the ENERGY STAR or Zero Energy Ready Home programs. Tax credits are available from now till January 1, 2032.

Single family home tax credits:
ENERGY STAR: up to $2,500
Zero Energy Ready Homes: up to $5,000

How do these savings benefit homeowners?

In many cases, contractors will pass some or all of these tax savings on to homeowners in the form of lower prices or incentives for energy-efficient upgrades. In addition to these potential upfront savings, ENERGY STAR and Zero Energy Ready Homes offer a number of long-term benefits, including:

• Lower energy bills: ENERGY STAR and Zero Energy Ready Homes are designed to use less energy, which can save you hundreds of dollars on your utility bills each year.
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• Increased comfort: These homes are typically better insulated and have more efficient heating and cooling systems, which can make them more comfortable to live in year-round.
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• Improved indoor air quality: ENERGY STAR and Zero Energy Ready Homes often include features that help to improve indoor air quality, such as better ventilation and filtration systems.
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• Higher resale value: Homes that are ENERGY STAR or Zero Energy Ready certified may be more attractive to buyers, which could lead to a higher resale value.

How can you take advantage of these programs?

If you're planning to build a new home, be sure to ask your contractor about ENERGY STAR and Zero Energy Ready Homes. They can help you build a home that meets these standards, which could qualify them for tax credits and save you money in the long run.

At Desert Architect, we can help you design your ENERGY STAR and/or Zero Energy Ready Home. We can help you navigate the process and ensure that your new home is not only beautiful and functional but also energy efficient and environmentally responsible.

Contact us today to learn more about how we can help you build the home of your dreams!

Additional Tips for Homeowners:

• Look for the ENERGY STAR label: When you're shopping for new appliances or other home products, look for the ENERGY STAR label. This indicates that the product meets high standards for energy efficiency.
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• Consider a home energy audit: A home energy audit can help you identify areas where your home is losing energy and recommend ways to improve its efficiency.
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• Take advantage of other incentives: In addition to the tax credits for contractors, there may be other incentives available to homeowners who make energy-efficient upgrades. Be sure to research any local or state programs that you may be eligible for.

By taking advantage of programs like ENERGY STAR and Zero Energy Ready Homes, you can help to protect the environment and save money on your energy bills. It's a win-win for everyone!

Resources:
ENERGYSTAR
Zero Energy Ready Home