Tax Credit for the Construction of Energy Efficient Homes

A tax subsidy for the construction of energy-efficient homes, this was among the first incentives examined by the tax credit task force.

The incentive became law in 2005, and provides up to $4,000 per home to builders who meet certain efficiency standards when constructing new homes that are 2,000 square feet or less. The homes must be 20 percent more efficient than the standards set by the International Energy Conservation Code of 2003.

The energy-efficient homes tax credit reduced state revenue collections by $3.8 million last year, according to Oklahoma Tax Commission records.

This tax credit is also transferable, which is another reason it’s drawn the scrutiny of the tax credit task force.

Home builders can sell surplus credits to individuals and corporations, who can use the credits to reduce the amount they pay in state taxes. Some builders accrue more energy-efficiency tax credits than what they owe in state taxes.

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