Originally created by Energy Policy Act of 2005, the New Energy Efficient Home Credit provides a $2,000.00 tax credit to a person who constructs a qualified new energy efficient home and a $1,000.00 tax credit to a person who constructs a qualified manufactured home provided that in either case:

(a) such person shall own and have a basis in the home during its construction

(b) the home is located in the United States and meets certain energy saving requirements

(c) construction is substantially completed after August 8, 2005 and

(d) the person who constructed the home sells or leases the home to another person for use as a residence after December 31, 2005, and before January 1, 2010. See 26 U.S.C. § 45L. 

Although the New Energy Efficient Home Credit expired on December 31, 2009, it may be extended for another year.  Recently, Congress passed H.R. 4213 – the American Workers, State, and Business Relief Act of 2010, which, among other things, extends the deadline for this tax credit through December 31, 2010.  However, this new legislation must still go through reconciliation and be signed by the President.