D.R. Nelson has obtained more than $1 Million dollars in
federal tax credits, state tax credits, and utility rebates for our clients.

As innovative builders embrace newer construction materials and processes to develop better performing homes, more and more programs are emerging to reward and incentivize that behavior across the industry. We have obtained tax deductions and cash rebates for our clients in past programs run by Ameren Illinois, ComEd, DTE Energy, Duke Energy, Nicor Gas, the Ohio Department of Development, the State of Michigan, the U.S. Department of Energy, and the IRS.

Whether the incentive is offered by the government or a private utility company, these energy efficient programs are a win-win for builders and homeowners, because both save money. However, not all programs are the same. There are different energy performance criteria needed to qualify a home for each program. Not sure if your new home qualifies? Let us help.

The 45L Energy Efficient Home Tax Credit

The federal tax credit from the IRS for energy efficient homes is back! For every qualifying new home sold in 2018, 2019, or 2020, the builder receives a $2,000 Tax Credit.

Builders qualify for the tax credit by having a RESNET Certified Rater like D.R. Nelson inspect, evaluate, and test the home to certify that it meets two criteria:

  • 50% Better Energy Consumption. The home must be certified to have an annual heating and cooling energy consumption that is at least 50% below the energy consumption of a comparable dwelling unit. A comparable dwelling unit is constructed to the 2006 IECC standards and has 13 SEER air conditioners and 13 SEER heat pumps measured in accordance with 10 C.F.R. 430.23(m); AND,
  • 1/5th From Building Envelope Component Improvements. One-fifth of that energy consumption improvement must be certified to be from improvements to the home’s building envelope components.

Consumers Energy Rebates for New Homes

Consumers Energy is currently offering rebates to builders with qualifying new homes in Michigan. Builders must work with a HERS (Home Energy Rating System) Rater like D.R. Nelson to inspect, evaluate, and test the home to certify that it meets one of two standards: ENERGY STAR or HERS. This program will only run for a limited time.

To qualify for the Consumers Energy ENERGY STAR rebate, the new home must be serviced by Consumers Energy for either gas, electric, or both, and the home must meet all ENERGY STAR requirements detailed here. The amount of the rebate varies but can be as high as $2,000 per home.

To qualify for the Consumers Energy HERS rebate, the new home must be serviced by Consumers Energy for either gas, electric, or both, and the home must meet a HERS Index Score of 56 or lower. The amount of the rebate varies but can be as high as $1,000 per home.

DTE Energy Rebates for New Homes

DTE Energy is currently offering rebates to builders with qualifying new homes in Michigan. Builders must work with a HERS Rater like D.R. Nelson to inspect, evaluate, and test the home to score the home’s energy performance on the HERS Index. This program will only run for a limited time.

To qualify for the DTE Energy rebate, the new home must be serviced by DTE Energy for either gas, electric, or both, and the home must have a HERS Index score of 60 or lower. Qualifying homes receive $10 per one thousand cubic feet (MCF) of natural gas saved and/or $0.25 per kilowatt-hour (kWh) of electricity saved. The amount of the rebate varies but can be as high as $1,400 for a combined gas and electric house, $1,000 for a gas only house, or $750 for an electric only house.

Nicor Gas Rebates for New Homes

Nicor Gas is currently offering rebates to builders with qualifying new homes in Illinois. Builders should work with energy code experts like D.R. Nelson to inspect, evaluate, and test the home to score the home’s energy performance. This program will only run for a limited time.

To qualify for the Nicor Gas rebate, the new home must be serviced by Nicor Gas and the home must meet some of these criteria: an advanced thermostat; a high-efficiency, sealed combustion furnace or boiler (95+ AFUE); air sealing that during a Blower Door Test measures 3 ACH or better (3.5 ACH or better for townhomes); and if applicable, duct sealing that during a Duct Test measures 2 CFM per 100 sqft or better (3 CFM per 100 sqft for townhomes). The amount of the rebate varies but can be as high as $475 per home.

Contact us today to see if a tax credit or rebate program can work for you.