Incentives and Programs

The Energy Policy Act of 2005 provides tax credits to eligible contractors for the construction of a qualified new energy-efficient home.

Home builders are eligible to qualify for tax credits of up to $2000 for a new home that achieves 50 percent energy savings for heating and cooling over the 2004 International Energy Conservation Code (IECC) and supplements, this exceeds the current 2004 Arkansas Energy Code requirements.   The home must also have building envelope component improvements providing a level of heating and cooling energy consumption that is at least 10 percent below that of a comparable home.  The credit is available for all new homes, including manufactured homes constructed in accordance with the Federal Manufactured Homes Construction and Safety Standards or meeting Energy Star criteria. 

These tax credits apply to new homes located in the United States whose construction is substantially completed after August 8, 2005, and which are purchased after December 31, 2005, and prior to January 1, 2009, for use as a residence.

The Internal Revenue Service (IRS) has provided the following guidance regarding the Energy Efficient Home Credit:

  • Notice 2006-27 provides guidance for building energy efficient homes other than manufactured homes.
  • Notice 2006-28 provides guidance for building energy efficient manufactured homes.

The IRS Form can be found here:

For more information about this item, please contact Lawrence Brown at 800-368-5242 x8565 or via e-mail at