On December 17, 2010, Congress enacted and the President signed into law a bill (H.R. 4853) known as the Tax Relief, Unemployment Insurance Reauthorization and Job Creation Act of 2010.  Among other things, this piece of new legislation extends the life of the New Energy Efficient Home Credit, which expired on December 31, 2009, by two years.

Originally created by the Energy Policy Act of 2005 (and as amended by Section 703 of the Tax Relief, Unemployment Insurance Reauthorization and Job Creation Act of 2010), 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, 2012.

The extension of the New Energy Efficient Home Credit is good news for “green” builders and producers of manufactured homes.