Instructions for Form 8908 (12/2025)

Energy Efficient Home Credit

Section references are to the Internal Revenue Code unless otherwise noted.

Revised: 12/2025

General Instructions

Future Developments

For the latest information about developments related to Form 8908 and its instructions, such as legislation enacted after they were published, go to IRS.gov/Form8908.

What’s New

Termination date.

P.L. 119-21, commonly known as the One Big Beautiful Bill Act changed the termination date for the section 45L new energy efficient home credit from December 31, 2032, to June 30, 2026. You can’t claim the credit for qualified new energy efficient homes acquired after June 30, 2026.

Item A.

For new item A, see Item A in the specific instructions, later.

Item B.

For new item B, see Item B in the specific instructions, later.

Item C.

For new item C, see Item C in the specific instructions, later.

Part III.

New Part III requires you to provide the address of the first 20 homes for which you are claiming the credit.

Form 7220.

If you are claiming a credit on line 3b or 4b, you must complete and attach to your tax return new Form 7220, Prevailing Wage and Apprenticeship (PWA) Verification and Corrections, to provide the required information when claiming the increased credit amount on these lines.

Purpose of Form

Eligible contractors use Form 8908 to claim a credit for each qualified new energy efficient home acquired by another person during the tax year for use as a residence. The credit is based on the energy saving requirements of the home. The credit is part of the general business credit.

Partnerships and S corporations must file this form to claim the credit. All other taxpayers aren’t required to complete or file this form if their only source for this credit is a partnership or an S corporation. Instead, they can report this credit directly on line 1p in Part III of Form 3800, General Business Credit.

Which Revision To Use

Use the December 2025 revision of Form 8908 and instructions for tax years beginning in 2025 or later. Use prior revisions of the form and instructions for earlier tax years. All revisions are available at IRS.gov/Form8908.

Who May Claim the Credit

An eligible contractor may claim the credit for a qualified new energy efficient home that is acquired by a person from that contractor during the tax year for use as a residence.

Definitions

Acquired

The term “acquired” includes the term “purchased.” Also, a qualified new energy efficient home that is leased by a person from an eligible contractor for use as a residence during the tax year is considered acquired. A qualified new energy efficient home is not acquired by a person from an eligible contractor if the eligible contractor retains the home for use as a residence.

A qualified new energy efficient home that is a manufactured home may be acquired directly or indirectly from an eligible contractor. A qualified new energy efficient home that is a manufactured home is acquired indirectly from an eligible contractor for use as a residence if the person that produced the manufactured home sells it to an intermediary (for example, a dealer of manufactured homes) and the intermediary (or the last of multiple intermediaries) sells or leases the manufactured home to another person for use as a residence. See section 7.03 of Notice 2023-65 for a safe harbor permitting an eligible contractor to rely on a dealer's statement concerning a sale by the dealer of manufactured homes.

Eligible Contractor

An eligible contractor is the person or business that constructed the qualified new energy efficient home and owned and had a basis in the home during its construction, or, in the case of a qualified new energy efficient home that is a manufactured home, the person that produced the home and owned and had a basis in the home during its production. For example, if a person that owns and has a basis in a qualified new energy efficient home during its construction hires a third-party contractor to construct the home, the person that hires the third-party contractor is the eligible contractor and the third-party contractor isn't an eligible contractor.

Certifier

A certifier is a person eligible to issue a certification under the respective Energy Star or zero energy ready home (ZERH) program requirements. For more information, see Notice 2023-65, section 6.04 available at IRS.gov/pub/irs-drop/n-23-65.pdf.

Information about Energy Star certifier requirements is available at www.energystar.gov/partner_resources/residential_new/working/energy_rating_cos.

Information about ZERH certifiers is available at www.energy.gov/eere/buildings/doe-recognized-zerh-certification-organizations.

Qualified New Energy Efficient Home

A qualified new energy efficient home is a dwelling unit located in the United States whose construction is substantially completed after August 8, 2005, and was acquired by another person on or before June 30, 2026, for use as a residence. The home must be certified and meet certain energy saving requirements. Construction includes substantial reconstruction and rehabilitation.

The term “United States” includes all 50 states and the District of Columbia. The term does not include U.S. territories.

Energy Saving Requirements

To meet the energy saving requirements, a qualified new energy efficient home must be eligible to participate in one of the following Energy Star programs.

  • The Energy Star Residential New Construction Program.

  • The Energy Star Manufactured New Homes Program.

  • The Energy Star Multifamily New Construction Program.

For more information about these programs, see the Energy Star Program Requirements webpage at www.energystar.gov/partner_resources/residential_new/program_reqs.

The credit amount is based on the extent to which each qualified new energy efficient home meets the energy saving requirements discussed below.

Zero energy ready home.

A zero energy ready home is a dwelling unit certified as a zero energy ready home under the ZERH program of the Department of Energy as in effect on January 1, 2023 (or any successor program determined by the Secretary of the Treasury). See section 4.04(2) of Notice 2023-65 for more information about the ZERH program currently in effect and the determination of any successor program.

Information about this program is available at www.energy.gov/eere/buildings/doe-zero-energy-ready-home-zerh-program-requirements.

Single-family home requirements (Energy Star Single-Family Home Program Requirements).

A dwelling unit eligible to participate in the Energy Star Residential New Construction Program or the Energy Star Manufactured New Homes Program meets these requirements if the dwelling unit meets:

  • The Energy Star Single-Family New Homes National Program Requirements 3.1 if the dwelling unit was acquired before 2025, or 3.2 if it was acquired after 2024; and

  • The most recent Energy Star Single-Family New Homes Program Requirements applicable to the location of the dwelling unit in effect on January 1, 2023; or January 1 of two calendar years before the date the dwelling unit was acquired, whichever is later; or

  • The most recent Energy Star Manufactured Home National Program Requirements in effect on January 1, 2023; or January 1 of two calendar years before the date the dwelling unit was acquired, whichever is later.

A dwelling unit certified under a currently effective version of one of the Energy Star Single-Family Home Program Requirements by definition is also certified under any prior version of the same program requirements. For example, a dwelling unit certified under the Energy Star Single-Family New Homes National Program Requirements 3.2 is also considered certified under the Energy Star Single-Family New Homes National Program Requirements 3.1.

The Environmental Protection Agency (EPA) will deem a dwelling unit certified under certain Energy Star Single-Family New Homes National Program Requirements to also be certified under certain Energy Star Single-Family New Homes Regional Program Requirements, and vice versa. To determine which deemed certifications correspond to which Energy Star program requirements, see the Energy Star webpage at www.energystar.gov/about/federal-tax-credits/ss-45l-tax-credit-home-builders.

Energy Star Single-Family New Homes Regional Program Requirements criteria exist for dwelling units located in California, Florida, Hawaii, Oregon, and Washington. For dwelling units not located in those states, then the most recent Energy Star Single-Family New Homes Program Requirements applicable to the location of the dwelling unit will be the effective Energy Star Single-Family New Homes National Program Requirements.

Multifamily home requirements (Energy Star Multifamily Home Program Requirements).

A dwelling unit eligible to participate in the Energy Star Multifamily New Construction Program meets these requirements if the dwelling unit meets:

  • The most recent Energy Star Multifamily New Construction National Program Requirements in effect on January 1, 2023; or January 1 of three calendar years before the dwelling unit was acquired, whichever is later; and

  • The most recent Energy Star Multifamily New Construction Regional Program Requirements applicable to the location of the dwelling unit in effect on January 1, 2023; or January 1 of three calendar years before the dwelling unit was acquired, whichever is later.

A dwelling unit certified under a currently effective version of one of the Energy Star Multifamily Home Program Requirements by definition is also certified under any prior version of the same program requirements. For example, a dwelling unit certified under the Energy Star Multifamily New Construction National Program Requirements 1.2 is also considered certified under the Energy Star Multifamily New Construction National Program Requirements 1.1.

The EPA will deem a dwelling unit certified under certain Energy Star Multifamily New Construction National Program Requirements to also be certified under certain Energy Star Multifamily New Construction Regional Program Requirements, and vice versa. To determine which deemed certifications correspond to which Energy Star program requirements, see the Energy Star webpage at www.energystar.gov/about/federal-tax-credits/ss-45l-tax-credit-home-builders.

Energy Star Multifamily New Construction Regional Program Requirements criteria exist for dwelling units located in California, Florida, Hawaii, Oregon, and Washington. For dwelling units not located in those states, then the most recent Energy Star Multifamily New Construction Program Requirements applicable to the location of the dwelling unit will be the effective Energy Star Multifamily New Construction National Program Requirements.

Prevailing wage requirements for multifamily homes.

You may be able to claim an increased credit amount for satisfying the prevailing wage requirements. The prevailing wage requirements with respect to any qualifying residence are that the eligible contractor must ensure that any laborers and mechanics employed by the eligible contractor or any subcontractor in the construction of such residence are paid wages at rates not less than the prevailing rates for construction, alteration, or repair.

For more information, see the frequently asked questions about the prevailing wage requirements available at IRS.gov/PWAFAQS.

Caution:

You must maintain and preserve sufficient records to establish compliance with the prevailing wage requirements and to claim the increased credit amount.

Certification

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 the dwelling unit is acquired from the eligible contractor by a person for use as a residence and before claiming the energy efficient home credit. These program requirements are discussed earlier. Certification information is available on the referenced websites.

Complying with the single or multifamily home requirements under the Energy Star program requires certification. See Notice 2023-65 available at IRS.gov/irb/2023-42_IRB#NOT-2023-65.

Specific Instructions

Item A.

Check "Yes" if for each home you are claiming the credit, you are an eligible contractor that participated in one of the Energy Star programs and you built or produced a qualified new energy efficient home. See the definition of Eligible Contractor and Qualified New Energy Efficient Home , earlier.

Item B.

Check "Yes" if for each home you are claiming the credit, you had a basis in a qualified new energy efficient home during its construction/production and before it was acquired by a person for use as a residence during the tax year.

Item C.

Check "Yes" if for each home you are claiming the credit, a certifier issued a certification of energy efficiency savings before it was acquired by a person for use as a residence during the tax year. See the definition of Certifier , earlier.

Caution:

You cannot claim the Energy Efficient Home credit if you answered “No” to any of items A through C.

Item D.

Enter the total number of different certifiers shown in Part II, lines 1 through 38, column (a).

Item E.

Enter the total number of home certifications shown in Part II, lines 1 through 38, column (c). This entry must equal the sum of Part I, lines 1a, 2a, 3a, 4a, 5a, and 6a.

Part I—Information About Your Qualified Homes

Line 1

The credit is $2,500 for each home acquired and eligible to participate in the:

  • Energy Star Residential New Construction Program that meets the single-family home requirements but is not certified as a zero energy ready home, or

  • Energy Star Manufactured New Homes Program that meets the single-family home requirements but is not certified as a zero energy ready home.

Generally, you must reduce the expenses incurred in the construction of each new home by the amount of the credit when figuring your basis in the property. However, do not reduce the expenses by the amount of the credit when figuring the adjusted basis of a building for purposes of the low-income housing credit. Also, expenses taken into account for either the rehabilitation credit or the energy credit part of the investment credit must not be taken into account when figuring the energy efficient home credit. See sections 45L(e) and (f).

Line 2

The credit is $5,000 for each home acquired and eligible to participate in the:

  • Energy Star Residential New Construction Program and is certified as a zero energy ready home, or

  • Energy Star Manufactured New Homes Program and is certified as a zero energy ready home.

Generally, you must reduce the expenses incurred in the construction of each new home by the amount of the credit when figuring your basis in the property. However, do not reduce the expenses by the amount of the credit when figuring the adjusted basis of a building for purposes of the low-income housing credit. Also, expenses taken into account for either the rehabilitation credit or the energy credit part of the investment credit must not be taken into account when figuring the energy efficient home credit. See sections 45L(e) and (f).

Line 3

The credit is $2,500 for each home acquired and eligible to participate in the Energy Star Multifamily New Construction Program that meets the prevailing wage requirements and the multifamily home requirements but is not certified as a zero energy ready home.

You must file Form 7220 to establish compliance with the prevailing wage requirements and to claim the increased credit amount for each home. For more information, see the Instructions for Form 7220.

Generally, you must reduce the expenses incurred in the construction of each new home by the amount of the credit when figuring your basis in the property. However, do not reduce the expenses by the amount of the credit when figuring the adjusted basis of a building for purposes of the low-income housing credit. Also, expenses taken into account for either the rehabilitation credit or the energy credit part of the investment credit must not be taken into account when figuring the energy efficient home credit. See sections 45L(e) and (f).

Line 4

The credit is $5,000 for each home acquired and eligible to participate in the Energy Star Multifamily New Construction Program that meets the prevailing wage requirements and is certified as a zero energy ready home.

You must file Form 7220 to establish compliance with the prevailing wage requirements and to claim the increased credit amount for each home. For more information, see the Instructions for Form 7220.

Generally, you must reduce the expenses incurred in the construction of each new home by the amount of the credit when figuring your basis in the property. However, do not reduce the expenses by the amount of the credit when figuring the adjusted basis of a building for purposes of the low-income housing credit. Also, expenses taken into account for either the rehabilitation credit or the energy credit part of the investment credit must not be taken into account when figuring the energy efficient home credit. See sections 45L(e) and (f).

Line 5

The credit is $500 for each home acquired and eligible to participate in the Energy Star Multifamily New Construction Program that meets the multifamily home requirements but is not certified as a zero energy ready home and does not meet the prevailing wage requirements.

Generally, you must reduce the expenses incurred in the construction of each new home by the amount of the credit when figuring your basis in the property. However, do not reduce the expenses by the amount of the credit when figuring the adjusted basis of a building for purposes of the low-income housing credit. Also, expenses taken into account for either the rehabilitation credit or the energy credit part of the investment credit must not be taken into account when figuring the energy efficient home credit. See sections 45L(e) and (f).

Line 6

The credit is $1,000 for each home acquired and eligible to participate in the Energy Star Multifamily New Construction Program that is certified as a zero energy ready home but does not meet the prevailing wage requirements.

Generally, you must reduce the expenses incurred in the construction of each new home by the amount of the credit when figuring your basis in the property. However, do not reduce the expenses by the amount of the credit when figuring the adjusted basis of a building for purposes of the low-income housing credit. Also, expenses taken into account for either the rehabilitation credit or the energy credit part of the investment credit must not be taken into account when figuring the energy efficient home credit. See sections 45L(e) and (f).

Line 7

Enter the total energy efficient home credits from:

  • Schedule K-1 (Form 1065), Partner’s Share of Income, Deductions, Credits, etc., box 15 (code AM); and

  • Schedule K-1 (Form 1120-S), Shareholder’s Share of Income, Deductions, Credits, etc., box 13 (code AM).

Partnerships and S corporations report the above credits on line 7. All other filers figuring a separate credit on earlier lines also report the above credits on line 7. All others not using earlier lines to figure a separate credit can report the above credits directly on Form 3800, Part III, line 1p.

Part II—Certifier Information

Columns (a) Through (d)

Column (a).

Enter the name of the person or business (certifier) that issued the energy efficient savings certification. Add the total number of different certifiers shown in lines 1 through 38 and enter in item D at the top of the form.

Column (b).

Enter the two-letter state abbreviation where the certifier is located.

Column (c).

Enter the total number of homes certified by this certifier. Add the total number of home certifications shown in lines 1 through 38 and enter in item E at the top of the form.

Column (d).

Enter the number of certifications that were modified from the original certification.

Part III—Qualified Homes’ Addresses

Note.

Fill out Part III for the first 20 qualified new energy efficient homes for which you are claiming the credit.

Column (a).

Enter the number and street where the qualified new energy efficient home is located.

Column (b).

Enter the city where the qualified new energy efficient home is located.

Column (c).

Enter the two-letter state abbreviation where the qualified new energy efficient home is located.

Column (d).

Enter the nine-digit ZIP code where the qualified new energy efficient home is located.

Instructions for Form 8908 - Notices

Paperwork Reduction Act Notice.

We ask for you to obtain the information on this form to carry out the Internal Revenue laws of the United States. You are required to obtain this information.

You are not required to obtain the information requested on a form that is subject to the Paperwork Reduction Act unless the form displays a valid OMB control number. Books or records relating to a form or its instructions must be retained as long as their contents may become material in the administration of any Internal Revenue law. Generally, tax returns and return information are confidential, as required by section 6103.

The time needed to complete and file this form will vary depending on individual circumstances. The estimated burden is approved under OMB control number 1545-0074 for individual filers, under OMB control number 1545-0047 for tax exempt filers, under OMB control number 1545-0123 for business filers, and under OMB control number 1545-0092 for trust filers. For the estimated averages, see the instructions for your income tax return.

If you have comments concerning the accuracy of these time estimates or suggestions for making this form simpler, we would be happy to hear from you. See the instructions for the tax return with which this form is filed.