New Energy Efficient Homes Credit 45L
What qualifies
A credit for eligible contractors who build or reconstruct qualified new energy-efficient homes for up to $5,000 per home. The contractor must own the home and sell or lease the home to a person for use as a residence.
The homes must also be specified categories of single-family (including manufactured) or multifamily homes under Energy Star programs, be in the United States, and meet applicable energy savings requirements based on home type and acquisition date.
Incentive value
The amount of the credit depends on eligibility requirements such as the type of home, the home's energy efficiency, and the date when someone buys or leases the home.
- $2,500 for new homes meeting Energy Star standards
- $5,000 for zero-energy-ready homes
- $500 base amount per unit for Energy Star multifamily housing
- $1,000 base amount per unit for zero-energy-ready multifamily housing
Who is eligible
Home builders who construct or reconstruct a qualified new energy-efficient home. The home builder must own the home and have a basis in it during construction. The home must be sold for use as a residence.
When the credit is available
The credit is available through 2032.
How to claim the credit
Eligible contractors, partnerships, and S corporations must use Form 8908 to claim a credit for each qualified new energy-efficient home sold or leased to another person during the tax year for use as a residence. You must claim the credit during the tax year that the energy-efficient home is sold.
Visit the federal website here for more details on what qualifies and how to use the credit.
Disclaimer: None of the information presented on this website should be considered official legal or financial advice. Please contact a licensed tax professional for additional information.