The §45L Energy Efficient Home Credit provides a per-unit tax credit to builders of qualifying energy-efficient single-family and multifamily homes. This incentive has been available since 2006 to encourage the construction of homes that meet specific energy-saving standards. Starting January 1, 2023, stricter energy efficiency requirements apply, with higher credit amounts available for units meeting those updated criteria. To be eligible, homes must be certified and sold or leased for use as a residence by June 30, 2026.
The One Big Beautiful Bill Act (OBBBA), signed into law on July 4, 2025, terminated the §45L tax credit for qualified homes after June 30, 2026. While the credit is no longer available under current law, it has expired and been extended several times in the past. Future legislation could potentially reinstate the credit.
Single Family Homes Benefits and Requirements
- $2,500 tax credit for single family homes certified as ENERGY STAR Single Family New Homes Program Version 3.1. (For homes acquired¹ before January 1, 2025 and Version 3.2 thereafter).
- $5,000 tax credit for single family homes certified as DOE Zero Energy Ready Home (ZERH).
Manufactured Homes Benefits and Requirements
- $2,500 tax credit for manufactured homes certified as ENERGY STAR Manufactured Home National Program requirements.
- $5,000 tax credit for manufactured homes certified as DOE Zero Energy Ready Home (ZERH).
Multifamily Homes Benefits and Requirements
- $500 tax credit for multifamily homes constructed after 2020 and certified as ENERGY STAR Single Family New Homes Program. When constructed with prevailing wage, the credit increases to $2,500.
- $1,000 tax credit for multifamily homes certified as DOE Zero Energy Ready Home. When constructed with prevailing wage, the credit increases to $5,000.
Buildings Higher Than Three Stories are Eligible
Beginning 2023, all residential buildings are eligible. Homes leased or sold as a residence within buildings higher than three stories are eligible.
¹ Acquired by a person for use as a residence.