3 Facility Types That Can Benefit From Modular Housing
Building a home can be an expensive and stressful process. Costs can be cut significantly with modular construction, as modular homes are cheaper to produce than non-modular homes. And as if that’s not good enough news—building a modular house entitles you to tax credits, cutting the expenses even more!
Discussed below are the various tax credits that modular homeowners can receive.
Solar Panels: You can write off up to 30% of the cost of your solar panel energy system and installation costs, as long as this is completed by January 1, 2017.
Solar Water Heaters: Similarly, you can write off up to 30% of the cost of your solar water heater system as long as it’s completed by January 1, 2017. The water must be used for the home and not for a pool or a hot tub.
To qualify for these tax credits, at least half of the energy the home generates must come from the sun. The system must be certified by the Solar Rating and Certification Corporation or a similar government-endorsed entity.
Wind Turbines: Small residential wind turbines are eligible for a 30% write off with no upper limit. To qualify, the system must have a nameplate capacity of at most 100 kilowatts.
Geothermal Heat Pumps: New homeowners can write off 30% of the cost of a geothermal heat pump and installation costs, as long as the pump is Energy Star approved.
Moving Expenses: You can write off 100% of your moving expenses, as long as the new home you’re building is at least 50 miles closer to your place of work than your old home was. Moving can be extremely costly, so this is a pretty good deal!
Property Taxes: Property taxes are 100% deductible for modular homes.
Mortgage Interest: If your total loan is less than $1 million of debt, all of the interest you pay each month is tax deductible. If the loan is over $1 million, then only the interest paid on $1 million is deductible. You can also deduct interest payments made during the construction loan phase, as long as construction doesn’t last more than 24 months.
Points: If you pay off any points on your mortgage, you can write off the entire amount paid. While you must use the tax deduction in the year you paid, you get to write it off all at once. You can even use this tax deduction after the first year. If the mortgage is for a refinanced modular home, you can still deduct the price of the points, but must do so over the remaining life of the loan.
If you are considering building a modular home, contact Nashua Builders today. We will be happy to discuss our modular home plans and prices with you.
Source:
Elitzer, J. (2015). Modular Home Tax Credits You Can’t Afford To Miss. Definitive Guide to Building Modular; Modular Homeowners.
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