§ 45L Tax Credit for Home Builders
Federal Tax Credit for Builders of Energy Efficient Homes
The Section § 45L New Energy Efficient Home Credit is available for homes and apartments acquired after January 1, 2023 and before July 1, 2026. Earning the § 45L Tax Credit requires certification to an eligible version of the ENERGY STAR program requirements.
- Single-Family Homes - $2,500 available for homes certified to eligible ENERGY STAR Single-Family New Home (SFNH) program requirements.
- Manufactured Homes - $2,500 available for homes certified to eligible ENERGY STAR Manufactured New Home (MH) program requirements.
- Multifamily Homes - $500 available for homes certified to eligible ENERGY STAR Multifamily New Construction (MFNC) program requirements, with a larger tax credit ($2,500) available when prevailing wage requirements are met.
Frequently Asked Questions
Get answers to what types of homes can qualify, who can claim the credit, how homes and apartments get ENERGY STAR certified, and more.
Note that a larger tax credit is also available for homes that are certified to DOE's Efficient New Homes program.
Minimum ENERGY STAR Versions Eligible for the § 45L Tax Credit
The tables below show the minimum ENERGY STAR program versions eligible for the § 45L Tax Credit by year of acquisition.
Partners should also be aware that the tax credit is optional, and, in some cases, a home may be certified as ENERGY STAR using a version of the program requirements that is not eligible for the § 45L Tax Credit. For example, in 2025, earning the § 45L Tax Credit requires that a home be certified to SFNH National v3.2; however, in most states, homes may continue to be certified using ENERGY STAR using SFNH National v3.1, although such homes would not qualify for the tax credit. Find the applicable version for certification of homes at www.energystar.gov/SFNHVersions and apartments at www.energystar.gov/MFNCVersions.
| State/Territory | Single-Family | Manufactured | Multifamily |
|---|---|---|---|
| AL, AK, AZ, AR, CO, CT, DE, DC, FL, GA, ID, IL, IN, IA, KS, KY, LA, ME, MD, MA, MI, MN, MS, MO, MT, NE, NV, NH, NJ, NM, NY, NC, ND, OH, OK, PA, RI, SC, SD, TN, TX, UT, VT, VA, WV, WI, WY | SFNH National v3.2 | MH v2 | MFNC National v1.1 |
| CA | SFNH California v3.3 | MH v2 | MFNC California v1.3 |
| HI | SFNH Pacific v3 | MH v2 | MFNC National v1.1 |
| OR, WA | SFNH National v3.2 | MH v2 | MFNC Oregon and Washington v1.2; or MFNC National v1.2 |
ENERGY STAR Policies Related to the § 45L Tax Credit
In support of the § 45L Tax Credit and IRS Notice 2023-65, the EPA has adopted policies (PDF, 1.87 MB) related to the defined effective dates of program requirements, deemed certifications for national and regional program requirements, and accepted documentation of ENERGY STAR certification.
Note that these policies are solely for the purpose of the § 45L Tax Credit. The policies do not modify the normal procedures of the ENERGY STAR New Construction programs, and do not modify the technical requirements that dwelling units must meet to earn ENERGY STAR certification.
Where can I get more information?
Individuals or entities should consult with a tax professional to determine whether and how they can claim the § 45L Tax Credit and if the credit can be used with other tax incentives or Federal incentives. For more detailed information about the § 45L Tax Credit, visit the Internal Revenue Service (IRS) website.