US Treasury: homes must be 'zero energy ready' to get full tax credit

Canada Canada Headlines News

The U.S. Treasury on Thursday released new guidance on energy efficient home tax credits worth up to $5,000 per dwelling, showing that for builders to receive the full amount, the homes must be fully capable of supporting solar power, electric heat pumps, electric vehicles and other efficiency enhancements. The Internal Revenue Services guidance is among a series of clarifications of Inflation Reduction Act clean energy tax credit rules due before the end of 2023, including a provision aimed at deterring companies from relying on Chinese supply chains. For homes in multi-family buildings to qualify for the full $5,000 credit, builders also must pay workers the area's prevailing wage, according to the IRS guidance.