Post 2021 Years Credit
The Inflation Reduction Act of 2022 makes the credit available for qualified new energy efficient homes acquired before July 1, 2026. (Sec. 45L(g), Act Sec. 13304(a)) The amount of the credit is increased, and can be $500, $1,000, $2,500, or $5,000, depending on which energy efficiency requirements the home satisfies (Sec 45L(a)(2), Act Sec 13304(b)) and whether the construction of the home meets the prevailing wage requirements discussed below.
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$2,500 Credit - for single family and manufactured homes when constructed per the standards set by the Energy Star Residential New Construction Program or the Manufactured Homes Program.
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$5,000 Credit - for single family and manufactured homes when they are certified by the Department of Energy as a Zero Energy Ready Home
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$500 Credit - For multifamily homes when meeting the Energy Star Single Family New Homes Program
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$1,000 Credit - for multifamily homes when they are certified by the Department of Energy as a Zero Energy Ready Home
Prevailing Wage Requirements
Under the prevailing wage requirements, for any qualified residence, the taxpayer must ensure that any laborers and mechanics employed by the taxpayer or any contractors and subcontractor or subcontractor in the construction of the residence are paid wages at rates not less than the prevailing rates for construction, alteration, or repair of a similar character in the locality in which the residence is located as determined by the Secretary of Labor. (Sec 45L(g)(2)(A), Act Sec. 13304(d))
Failure to satisfy the prevailing wage requirements can be cured by paying to each affected worker an amount equal to the difference between the amount actually paid and the amount which would have been paid under the prevailing wages rules, plus interest, and paying a $5,000 penalty per affected worker.