Does Your Home Builder Know About These 2023 Tax Credits?

Industry News,

Originally Published by: LBM Journal — July 25, 2023
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LBM Journal ImageThe U.S. government has introduced tax credits for new home construction in 2023 and 2024 that are meant to promote the growth of the construction industry and incentivize homeowners to invest in developing new residential properties.

Highlights of the tax credits for new home construction in 2023 and 2024 include:

  • New Home Construction Tax Credit: Eligible persons can claim a tax credit on qualifying expenses related to constructing new residential properties. The credit amount may vary based on the size, location, and energy efficiency of the newly constructed homes.
  • Energy-Efficient Home Tax Credit: The government encourages the construction of energy-efficient homes by offering a tax credit for properties that meet specific energy efficiency standards. Builders and new homeowners can receive financial incentives for constructing homes with features like solar panels, efficient insulation, and high-performance heating and cooling systems.
  • Affordable Housing Tax Credit: To address housing affordability challenges, there may be additional tax credits available for constructing affordable housing units. These incentives promote the development of housing options accessible to low- and middle-income families.
  • Job Creation Benefits: Growth in new home construction also leads to job creation within the construction industry and related sectors, providing economic benefits to local communities. By taking advantage of these tax credits for new home construction, homeowners and homebuilders can reduce their tax liabilities, improve the return on their investments, and make homeownership more accessible to potential buyers.