New Home Trend and Tax Credits

A recent International Builders Show in Orlando, Florida indicates a strong demand for energy-efficient, customizable and hurricane-resistant homes from homeowners who can afford the best and who hope to set themselves apart from their neighbors. Home suppliers did showcase new products including leather-accented bathroom fixtures, a hearth-waterfall, a rotating bookcase that allows homeowners to conceal their televisions, a copper garage door and solar-powered blinds. Many of these new top-of-the-line products, both functional and decorative, come with a hefty price tag. Nevertheless, the Energy Policy Act of 2005, signed into law by President Bush on August 8, 2005 will provide tax credit for homeowners installing solar heating equipment in their homes. The tax credit is worth 30% of the cost of installing solar heating or photovoltaic equipment, up to a maximum tax credit of $2,000. The bulk of the tax benefits will go to energy-related businesses and commercial users of energy who purchase energy-efficient cars, trucks, and sport utility vehicles and who may qualify for two new credits, a $1,600 tax credit for energy-efficient vehicles and an additional "conservation credit" of up to $1,000. The credits won't be available until 2006. For more information, visit Federal Energy Regulatory Commission at www.fdrc.gov.