The Bipartisan Budget Bill of 2018, which President Trump signed into law on February 9, 2018, has extended the Energy-Efficient Homes Credit for homes sold before December 31, 2017. The extension allows builders a $2,000 credit for each "dwelling unit" built and sold/placed into service before the extended date of December 31, 2017.
This credit has historically been thought to apply to single family "homes," but is also available for Energy Efficient townhomes, condos, and apartments, assuming they meet the description of a "dwelling unit." This "dwelling unit" concept dramatically expands the builders and contractors who able to claim this credit.
Additionally, these credits can be claimed on an amended return. Therefore, if you have built energy efficient multi-family dwellings that are less than 3 stories above ground, you could go back and amend your returns to claim a $2,000 credit for each unit built.
Thank you to Brandon Pratt, CPA and Senior Tax Manager at LWBJ, for his assistance in drafting this legal update. If you have questions regarding the applicability of the Energy Efficient Home Credit to their business, please contact me at JodieMcDougal@davisbrownlaw.com or Brandon Pratt at LWBJ.
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