Tax credit available for the construction or substantial rehabilitation of zero-energy ready or energy star certified homes
Equity Categories
Opportunity Zone
Eligible Applicant
Households Individual
Description
IRS / Treasury Guidance on § 45L
The IRS provides guidance through Notice 2023-65, clarifying how contractors can claim § 45L credits for new or substantially reconstructed energy-efficient homes. This includes details on who qualifies, certification requirements, energy savings standards, and documentation needs.
Builders must certify homes under either the ENERGY STAR Residential New Construction program or the DOE Zero Energy Ready Home (ZERH) program. For ZERH-certified homes, a higher credit is available—up to $5,000 per home.
Eligibility depends on the permit date (or production date for manufactured homes) for determining which version of the ZERH/ENERGY STAR program applies.
The IRS recommends maintaining detailed documentation of certification, energy ratings, and sale/acquisition to support claims via Form 8908.
OBBBA’s Effect on § 45L
New acquisition deadline. Under OBBBA, the § 45L credit is terminated for homes acquired after June 30, 2026. Homes purchased or leased after that date are not eligible for the credit.
The termination date applies to the acquisition of the home—meaning even if construction or certification was completed earlier, homes must be acquired by June 30, 2026, to claim the credit.
OBBBA does not simply shift the expiration out to 2032—it accelerates the cutoff, narrowing the window for homes to qualify.
Available Funding
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Maximum Award Amount
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Application Deadline
6/30/2026
Tags
Energy Efficiency & Demand Response Development Buildings Charging/Fueling Infrastructure
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