Energy Efficient Residential Construction Tax Credit (Personal)
Administered by Oklahoma Tax Commission
This credit goes to the contractor who builds the home, not to the buyer, but it can help make a new energy efficient home under 2,000 square feet more affordable to build. Homes must be well above the 2003 International Energy Conservation Code, with efficient heating and cooling, windows, doors, roofs, and insulation. Ask your builder whether the home qualifies and contact the Oklahoma Tax Commission for details.
If you are the primary builder of a qualifying home or manufactured home under 2,000 square feet completed after December 31, 2005, you can claim a credit for eligible expenditures of up to $2,000 for homes 20% to 39% above the 2003 IECC or up to $4,000 for homes 40% or more above it. Heating and cooling equipment must meet National Appliance Energy Conservation Act of 1987 minimums, and envelope improvements must account for a required share of the reduced energy use. Unused credit carries forward up to 4 years, and credits earned after August 25, 2006 can be transferred to any taxpayer by filing a transfer agreement.
This is an Oklahoma personal income tax credit, available from tax year 2006, that targets builders (installers/contractors) of energy efficient homes and manufactured homes under 2,000 square feet. The credit equals eligible expenditures, capped at $2,000 for homes 20% to 39% above the 2003 IECC and $4,000 for homes 40% or more above it, with a 4-year carryforward for unused amounts. Credits earned after August 25, 2006 are freely transferable upon filing a transfer agreement, and eligible measures cover HVAC, windows, doors, roofs, insulation, and whole-building improvements.
Program details
- Program ID
- 1230
- Effective
- 11/1/2005
- Last updated
- 3/21/2026
Eligibility
- Sectors
- installers/contractors
- Technologies
- furnaces heat pumps air conditioners caulking/weather-stripping duct/air sealing building insulation windows doors roofs comprehensive measures/whole building
Program summary
Oklahoma allows a contractor who is the primary builder of an energy efficient home or manufactured home substantially completed after December 31, 2005, to claim an income tax credit beginning in tax year 2006. The home must be under 2,000 square feet. Improvements eligible for the credit include energy efficient heating and cooling systems, windows, doors, roofs, and insulation to minimize heat loss and gain.
The contractor can take a tax credit for the amount of the eligible expenditures, not to exceed $2,000 for a home that is between 20% and 39% above the International Energy Conservation Code 2003 (and any supplement in effect at the time of completion) or $4,000 for a home that is 40% or above of the Code. In addition, the heating and cooling efficiencies must meet the minimum requirements established by the National Appliance Energy Conservation Act of 1987 and building envelope improvements must account for a certain percentage of the reduced annual heating and cooling energy consumption levels.
The contractor can carryover any unused portion of the tax credit for up to 4 subsequent years. Credits earned after August 25, 2006 are freely transferable to any taxpayer upon the filing of a transfer agreement.
Contact & resources
- Contact email
- Kylah_McNabb@okcommerce.gov
Please verify current program details with the administering agency before making any financial decisions.
