Page 64 - IRS Business Tax Credits Guide

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• Has building envelope component improvements that meets the requirements of section 45L(c) (as in effect for
account for at least 1/3 of the 30% reduction in energy homes sold or leased before 2023) before claiming the
consumption, or section 45L credit. The certification will be treated as
• Meets the current requirements established by the satisfying the requirements of section 45L(c) if all the
Administrator of the Environmental Protection Agency construction has been performed in a manner consistent
under the Energy Star Labeled Homes program. with the design specifications provided to the eligible
Heating and cooling energy and cost savings must be certifier and the certification contains all of the information
calculated using the procedures described in Residential required by section 3 of Notice 2008-35, available at
Energy Services Network (RESNET) Publication 001-16, IRS.gov/irb/2008-12_IRB#NOT-2008-35; or, for
or an equivalent calculation procedure. You can access manufactured homes, section 3 or section 4 of Notice
RESNET publications at http://staging.resnet.us/ 2008-36, available at IRS.gov/irb/
professional/standards/tax_credits. 2008-12_IRB#NOT-2008-36.
Zero Energy Ready Home Program requirement (for For homes sold or leased after 2022, an eligible
homes sold or leased after 2022). A dwelling unit contractor must obtain any certification(s) the dwelling unit
meets this requirement if the dwelling unit is certified as a needs to meet the applicable program requirement(s)
zero energy ready home under the Zero Energy Ready referred to in section 45L(c) before claiming the section
Home Program of the Department of Energy as in effect 45L credit. These program requirements are discussed
on January 1, 2023 (or any successor program earlier. Certification information is available on the
determined by the Secretary of the Treasury). referenced websites.
Information about this program is available at
www.energy.gov. Specific Instructions

Single-family home requirements (for homes sold or Line 1
leased after 2022). A dwelling unit meets these
requirements if the dwelling unit meets: For each home sold or leased before 2023 that meets the
• The Energy Star Single-Family New Homes National 50% energy efficient standard, the allowable credit is
Program Requirements 3.1; and $2,000.
• The Energy Star Single-Family New Homes Program Reduce the expenses incurred in the construction of
Requirements in effect on January 1, 2023, which are each new home by the amount of the credit. Expenses
applicable for the location of the dwelling unit; or taken into account for either the rehabilitation credit or
• The Energy Star Manufactured Home National Program energy credit part of the investment tax credit must not
Requirements in effect on January 1, 2023. again be considered in determining the energy efficient
Information about Energy Star programs is available at home credit. See section 45L(f).
www.energystar.gov/partner_resources/residential_new. Line 2
Multi-family home requirements (for homes sold or
leased after 2022). A dwelling unit meets these For each manufactured home sold or leased before 2023
requirements if the dwelling unit meets: that meets the 30% energy efficient standard, the
• The Energy Star Multi-Family New Construction allowable credit is $1,000.
National Program Requirements in effect on January 1, Reduce the expenses incurred in the construction of
2023; and each new home by the amount of the credit. Expenses
• The Energy Star Multi-Family New Construction taken into account for either the rehabilitation credit or
Regional Program Requirements in effect on January 1, energy credit part of the investment tax credit must not
2023, which are applicable for the location of the dwelling again be considered in determining the energy efficient
unit. home credit. See section 45L(f).
Information about Energy Star programs is available at Line 3
www.energystar.gov/partner_resources/residential_new.
Prevailing wage requirements (for multi-family The credit is $2,500 for each home sold or leased after
homes sold or leased after 2022). The prevailing wage 2022 and eligible to participate in the:
requirements with respect to any qualifying residence are • Energy Star Residential New Construction Program that
that the eligible contractor shall ensure that any laborers meets the Single-Family Home Requirements but is not
and mechanics employed by the eligible contractor or any certified as a Zero Energy Ready Home,
subcontractor in the construction of such residence shall • Energy Star Manufactured New Homes Program that
be paid wages at rates not less than the prevailing rates meets the Single-Family Home Requirements but is not
for construction, alteration, or repair of a similar character certified as a Zero Energy Ready Home, or
in the locality in which such residence is located as most • Energy Star Multi-Family New Construction Program
recently determined by the Secretary of Labor. For details, that meets the prevailing wage requirements and the
see Notice 2022-61, 2022-52 I.R.B. 560, available at Multi-Family Home Requirements but is not certified as a
IRS.gov/irb/2022-52_IRB#NOT-2022-61. Zero Energy Ready Home.
Certification Generally, reduce the expenses incurred in the
For homes sold or leased before 2023, an eligible construction of each new home by the amount of the
credit. However, do not reduce the expenses when
contractor must obtain a certification that the dwelling unit determining the adjusted basis of a building for purposes

-2- Instructions for Form 8908 (Rev. January 2023)