45L Tax Credit: 8909 Form – Energy Efficient Home Credit
4328 Walker St
Energy Saving Requirements
The credit amount is based on the extent to which each new energy efficient home meets the energy saving requirements discussed below.
50% energy efficient standard (for homes sold or leased before 2023).
The credit is $2,000 for a dwelling unit that is certified to have an annual level of heating and cooling energy consumption at least 50% below the annual level of heating and cooling energy consumption of a comparable dwelling unit and has building envelope component improvements that account for at least 1/5 of the 50% reduction in energy consumption. A manufactured home meeting the requirements described above and the Federal Manufactured Home Construction and Safety Standards (FMHCSS) requirements (see 24 C.F.R. part 3280) is also eligible for the $2,000 credit.
Comparable dwelling unit.
A comparable dwelling unit:
- Is constructed in accordance with the standards of chapter 4 of the 2006 International Energy Conservation Code as such Code (including supplements) was in effect on January 1, 2006;
- Has air conditioners with a Seasonal Energy Efficiency Ratio (SEER) of 13, measured in accordance with 10 C.F.R. 430.23(m); and
- Has heat pumps with a SEER of 13 and a Heating Seasonal Performance Factor (HSPF) of 7.7, measured in accordance with 10 C.F.R. 430.23(m).
30% energy efficient standard (for homes sold or leased before 2023).
The credit is $1,000 for a manufactured home that doesn’t meet the 50% energy saving requirement but is certified to have an annual level of heating and cooling energy consumption at least 30% below the annual level of heating and cooling energy consumption of a comparable dwelling unit (discussed above) and:
- Meets FMHCSS requirements, and
- Has building envelope component improvements that account for at least 1/3 of the 30% reduction in energy consumption, or
- Meets the current requirements established by the Administrator of the Environmental Protection Agency under the Energy Star Labeled Homes program.
Heating and cooling energy and cost savings must be calculated using the procedures described in Residential Energy Services Network (RESNET) Publication 001-16, or an equivalent calculation procedure.
Single-family home requirements (for homes sold or leased after 2022).
A dwelling unit meets these requirements if the dwelling unit meets:
- The Energy Star Single-Family New Homes National Program Requirements 3.1; and
- The Energy Star Single-Family New Homes Program Requirements in effect on January 1, 2023, which are applicable for the location of the dwelling unit; or
- The Energy Star Manufactured Home National Program Requirements in effect on January 1, 2023.
Multi-family home requirements (for homes sold or leased after 2022).
A dwelling unit meets these requirements if the dwelling unit meets:
- The Energy Star Multi-Family New Construction National Program Requirements in effect on January 1, 2023; and
- The Energy Star Multi-Family New Construction Regional Program Requirements in effect on January 1, 2023, which are applicable for the location of the dwelling unit.
Prevailing wage requirements (for multi-family homes sold or leased after 2022).
The prevailing wage requirements with respect to any qualifying residence are that the eligible contractor shall ensure that any laborers and mechanics employed by the eligible contractor or any subcontractor in the construction of such residence shall be paid wages at rates not less than the prevailing rates for construction, alteration, or repair of a similar character in the locality in which such residence is located as most recently determined by the Secretary of Labor. For details, see Notice 2022-61, 2022-52 I.R.B. 560.
Certification
For homes sold or leased before 2023, an eligible contractor must obtain a certification that the dwelling unit meets the requirements of section 45L(c) (as in effect for homes sold or leased before 2023) before claiming the section 45L credit. The certification will be treated as satisfying the requirements of section 45L(c) if all the construction has been performed in a manner consistent with the design specifications provided to the eligible certifier and the certification contains all of the information required by section 3 of Notice 2008-35; or, for manufactured homes, section 3 or section 4 of Notice 2008-36
For homes sold or leased after 2022, an eligible contractor must obtain any certification(s) the dwelling unit needs to meet the applicable program requirement(s) referred to in section 45L(c) before claiming the section 45L credit. These program requirements are discussed earlier. Certification information is available on the referenced websites.
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