Internal Revenue Code · 26 U.S.C.

§ 45L. New energy efficient home credit

In force Text current through Public Law 119-121 (October 9, 2026) release point 119-121

Official text, no changes From the Office of the Law Revision Counsel, release point 119-121 (current through Public Law 119-121 (October 9, 2026)). Compare it with the official text at uscode.house.gov (external site).

Cite as 26 U.S.C. § 45L

At a glance

Read from the text, the source credit and the official notes. Not part of the law.

Status: In force
Added: August 8, 2005 by Pub. L. 109–58
Last amended: July 4, 2025 by Pub. L. 119–21
Amendments: 12 dated changes in the source credit
Length: 8 subsections · 1,280 words · about 6 min to read
Defines: 4 terms
Cross-references: cites 4; cited by 3 Code sections and 0 other regulations
Regulations: 1 issued under this section

¶(a) Allowance of credit

¶(1) In general For purposes of section 38, in the case of an eligible contractor, the new energy efficient home credit for the taxable year is the applicable amount for each qualified new energy efficient home which is—

¶(A) constructed by the eligible contractor, and

¶(B) acquired by a person from such eligible contractor for use as a residence during the taxable year.

¶(2) Applicable amount For purposes of paragraph (1), the applicable amount is an amount equal to—

¶(A) in the case of a dwelling unit which is eligible to participate in the Energy Star Residential New Construction Program or the Energy Star Manufactured New Homes program—

¶(i) which meets the requirements of subsection (c)(1)(A) (and which does not meet the requirements of subsection (c)(1)(B)), $2,500, and

¶(ii) which meets the requirements of subsection (c)(1)(B), $5,000, and

¶(B) in the case of a dwelling unit which is part of a building eligible to participate in the Energy Star Multifamily New Construction Program—

¶(i) which meets the requirements of subsection (c)(1)(A) (and which does not meet the requirements of subsection (c)(1)(B)), $500, and

¶(ii) which meets the requirements of subsection (c)(1)(B), $1,000.

¶(b) Definitions For purposes of this section—

¶(1) Eligible contractor The term “eligible contractor” means—

¶(A) the person who constructed the qualified new energy efficient home, or

¶(B) in the case of a qualified new energy efficient home which is a manufactured home, the manufactured home producer of such home.

¶(2) Qualified new energy efficient home The term “qualified new energy efficient home” means a dwelling unit—

¶(A) located in the United States,

¶(B) the construction of which is substantially completed after the date of the enactment of this section, and

¶(C) which meets the energy saving requirements of subsection (c).

¶(3) Construction

The term “construction” includes substantial reconstruction and rehabilitation.

¶(4) Acquire

The term “acquire” includes purchase.

¶(c) Energy saving requirements

¶(1) In general

¶(A) In general

A dwelling unit meets the requirements of this subparagraph if such dwelling unit meets the requirements of paragraph (2) or (3) (whichever is applicable).

¶(B) Zero energy ready home program

A dwelling unit meets the requirements of this subparagraph if such dwelling unit is certified as a zero energy ready home under the zero energy ready home program of the Department of Energy as in effect on January 1, 2023 (or any successor program determined by the Secretary).

¶(2) Single-family home requirements A dwelling unit meets the requirements of this paragraph if—

¶(A) such dwelling unit meets—

¶(i)

¶(I) in the case of a dwelling unit acquired before January 1, 2025, the Energy Star Single-Family New Homes National Program Requirements 3.1, or

¶(II) in the case of a dwelling unit acquired after December 31, 2024, the Energy Star Single-Family New Homes National Program Requirements 3.2, and

¶(ii) the most recent Energy Star Single-Family New Homes Program Requirements applicable to the location of such dwelling unit (as in effect on the latter of January 1, 2023, or January 1 of two calendar years prior to the date the dwelling unit was acquired), or

¶(B) such dwelling unit meets the most recent Energy Star Manufactured Home National program requirements as in effect on the latter of January 1, 2023, or January 1 of two calendar years prior to the date such dwelling unit is acquired.

¶(3) Multi-family home requirements A dwelling unit meets the requirements of this paragraph if—

¶(A) such dwelling unit meets the most recent Energy Star Multifamily New Construction National Program Requirements (as in effect on either January 1, 2023, or January 1 of three calendar years prior to the date the dwelling was acquired, whichever is later), and

¶(B) such dwelling unit meets the most recent Energy Star Multifamily New Construction Regional Program Requirements applicable to the location of such dwelling unit (as in effect on either January 1, 2023, or January 1 of three calendar years prior to the date the dwelling was acquired, whichever is later).

¶(d) Certification

¶(1) Method of certification

A certification described in subsection (c) shall be made in accordance with guidance prescribed by the Secretary, after consultation with the Secretary of Energy. Such guidance shall specify procedures and methods for calculating energy and cost savings.

¶(2) Form

Any certification described in subsection (c) shall be made in writing in a manner which specifies in readily verifiable fashion the energy efficient building envelope components and energy efficient heating or cooling equipment installed and their respective rated energy efficiency performance.

¶(e) Basis adjustment

For purposes of this subtitle, if a credit is allowed under this section in connection with any expenditure for any property, the increase in the basis of such property which would (but for this subsection) result from such expenditure shall be reduced by the amount of the credit so determined. This subsection shall not apply for purposes of determining the adjusted basis of any building under section 42.

¶(f) Coordination with investment credit

For purposes of this section, expenditures taken into account under section 47 or 48(a) shall not be taken into account under this section.

¶(g) Prevailing wage requirement

¶(1) In general In the case of a qualifying residence described in subsection (a)(2)(B) meeting the prevailing wage requirements of paragraph (2)(A), the credit amount allowed with respect to such residence shall be—

¶(A) $2,500 in the case of a residence which meets the requirements of subparagraph (A) of subsection (c)(1) (and which does not meet the requirements of subparagraph (B) of such subsection), and

¶(B) $5,000 in the case of a residence which meets the requirements of subsection (c)(1)(B).

¶(2) Prevailing wage requirements

¶(A) In general

The requirements described in this subparagraph with respect to any qualified residence are that the taxpayer shall ensure that any laborers and mechanics employed by the taxpayer or any contractor or 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, in accordance with subchapter IV of chapter 31 of title 40, United States Code.

¶(B) Correction and penalty related to failure to satisfy wage requirements

Rules similar to the rules of section 45(b)(7)(B) shall apply.

¶(3) Regulations and guidance

The Secretary shall issue such regulations or other guidance as the Secretary determines necessary to carry out the purposes of this subsection, including regulations or other guidance which provides for requirements for recordkeeping or information reporting for purposes of administering the requirements of this subsection.

¶(h) Termination

This section shall not apply to any qualified new energy efficient home acquired after June 30, 2026.

(Added Pub. L. 109–58, title XIII, § 1332(a), Aug. 8, 2005, 119 Stat. 1024; amended Pub. L. 109–432, div. A, title II, § 205, Dec. 20, 2006, 120 Stat. 2945; Pub. L. 110–172, § 11(a)(7), Dec. 29, 2007, 121 Stat. 2485; Pub. L. 110–343, div. B, title III, § 304, Oct. 3, 2008, 122 Stat. 3845; Pub. L. 111–312, title VII, § 703(a), Dec. 17, 2010, 124 Stat. 3311; Pub. L. 112–240, title IV, § 408(a), (b), Jan. 2, 2013, 126 Stat. 2342; Pub. L. 113–295, div. A, title I, § 156(a), Dec. 19, 2014, 128 Stat. 4021; Pub. L. 114–113, div. Q, title I, § 188(a), Dec. 18, 2015, 129 Stat. 3074; Pub. L. 115–123, div. D, title I, § 40410(a), Feb. 9, 2018, 132 Stat. 150; Pub. L. 116–94, div. Q, title I, § 129(a), Dec. 20, 2019, 133 Stat. 3232; Pub. L. 116–260, div. EE, title I, § 146(a), Dec. 27, 2020, 134 Stat. 3055; Pub. L. 117–169, title I, § 13304(a)–(e), Aug. 16, 2022, 136 Stat. 1952–1954; Pub. L. 119–21, title VII, § 70508, July 4, 2025, 139 Stat. 251.)

Terms defined here

Where the text says “the term … means”. Select a term to jump to its definition.

acquire § 45L(b)(4)
construction § 45L(b)(3)
eligible contractor § 45L(b)(1)
qualified new energy efficient home § 45L(b)(2)

Regulations under this section

Treasury regulations (26 CFR) issued under § 45L

§ 1.45L-3 Rules relating to the increased credit amount for prevailing wage.

Cross-references

Computed from the citations in the text of Title 26 and 26 CFR.

This section cites 4 other sections

Cited by 3 Code sections

Amendment history

From the source credit and the official notes, newest first.

July 4, 2025Amended by Pub. L. 119–21Parts changed in 2025: (h)
August 16, 2022Amended by Pub. L. 117–169Parts changed in 2022: (a)(2) (c) (e) (g) (h)
December 27, 2020Amended by Pub. L. 116–260Parts changed in 2020: (g)
December 20, 2019Amended by Pub. L. 116–94Parts changed in 2019: (g)
February 9, 2018Amended by Pub. L. 115–123Parts changed in 2018: (g)
December 18, 2015Amended by Pub. L. 114–113Parts changed in 2015: (g)
December 19, 2014Amended by Pub. L. 113–295Parts changed in 2014: (g)
January 2, 2013Amended by Pub. L. 112–240Parts changed in 2013: (c)(1)(A)(i) (g)
December 17, 2010Amended by Pub. L. 111–312Parts changed in 2010: (g)
October 3, 2008Amended by Pub. L. 110–343Parts changed in 2008: (g)
December 29, 2007Amended by Pub. L. 110–172Parts changed in 2007: (c)(2)
December 20, 2006Amended by Pub. L. 109–432Parts changed in 2006: (g)
August 8, 2005Added by Pub. L. 109–58

Where it sits in the Code

Nearby sections

Official notes

Show the Law Revision Counsel's notes (amendments, effective dates)

Editorial Notes

References in Text

The date of the enactment of this section, referred to in subsec. (b)(2)(B), is the date of enactment of Pub. L. 109–58, which was approved Aug. 8, 2005.

Amendments

2025—Subsec. (h). Pub. L. 119–21 substituted “June 30, 2026” for “December 31, 2032”.

2022—Subsec. (a)(2). Pub. L. 117–169, § 13304(b), amended par. (2) generally. Prior to amendment, par. (2) related to applicable amount for dwelling unit.

Subsec. (c). Pub. L. 117–169, § 13304(c), amended subsec. (c) generally. Prior to amendment, subsec. (c) related to energy saving requirements of dwelling unit.

Subsec. (e). Pub. L. 117–169, § 13304(e), inserted at end “This subsection shall not apply for purposes of determining the adjusted basis of any building under section 42.”

Subsec. (g). Pub. L. 117–169, § 13304(d), added subsec. (g). Former subsec. (g) redesignated (h).

Pub. L. 117–169, § 13304(a), substituted “December 31, 2032” for “December 31, 2021”.

Subsec. (h). Pub. L. 117–169, § 13304(d), redesignated subsec. (g) as (h).

2020—Subsec. (g). Pub. L. 116–260 substituted “December 31, 2021” for “December 31, 2020”.

2019—Subsec. (g). Pub. L. 116–94 substituted “December 31, 2020” for “December 31, 2017”.

2018—Subsec. (g). Pub. L. 115–123 substituted “December 31, 2017” for “December 31, 2016”.

2015—Subsec. (g). Pub. L. 114–113 substituted “December 31, 2016” for “December 31, 2014”.

2014—Subsec. (g). Pub. L. 113–295 substituted “December 31, 2014” for “December 31, 2013”.

2013—Subsec. (c)(1)(A)(i). Pub. L. 112–240, § 408(b), substituted “2006 International Energy Conservation Code, as such Code (including supplements) is in effect on January 1, 2006” for “2003 International Energy Conservation Code, as such Code (including supplements) is in effect on the date of the enactment of this section”.

Subsec. (g). Pub. L. 112–240, § 408(a), substituted “December 31, 2013” for “December 31, 2011”.

2010—Subsec. (g). Pub. L. 111–312 substituted “December 31, 2011” for “December 31, 2009”.

2008—Subsec. (g). Pub. L. 110–343 substituted “December 31, 2009” for “December 31, 2008”.

2007—Subsec. (c)(2), (3). Pub. L. 110–172 substituted “part 3280” for “section 3280” in par. (2) and in introductory provisions of par. (3).

2006—Subsec. (g). Pub. L. 109–432 substituted “2008” for “2007”.

Effective Date of 2022 Amendment

Pub. L. 117–169, title I, § 13304(f), Aug. 16, 2022, 136 Stat. 1954, provided that:

“(1) In general.— Except as provided in paragraph (2), the amendments made by this section [amending this section] shall apply to dwelling units acquired after December 31, 2022.

“(2) Extension of credit.— The amendments made by subsection (a) [amending this section] shall apply to dwelling units acquired after December 31, 2021.”

Effective Date of 2020 Amendment

Pub. L. 116–260, div. EE, title I, § 146(b), Dec. 27, 2020, 134 Stat. 3055, provided that: “The amendment made by this section [amending this section] shall apply to homes acquired after December 31, 2020.”

Effective Date of 2019 Amendment

Pub. L. 116–94, div. Q, title I, § 129(b), Dec. 20, 2019, 133 Stat. 3232, provided that: “The amendment made by this section [amending this section] shall apply to homes acquired after December 31, 2017.”

Effective Date of 2018 Amendment

Pub. L. 115–123, div. D, title I, § 40410(b), Feb. 9, 2018, 132 Stat. 150, provided that: “The amendment made by this section [amending this section] shall apply to homes acquired after December 31, 2016.”

Effective Date of 2015 Amendment

Pub. L. 114–113, div. Q, title I, § 188(b), Dec. 18, 2015, 129 Stat. 3074, provided that: “The amendment made by this section [amending this section] shall apply to homes acquired after December 31, 2014.”

Effective Date of 2014 Amendment

Pub. L. 113–295, div. A, title I, § 156(b), Dec. 19, 2014, 128 Stat. 4022, provided that: “The amendment made by this section [amending this section] shall apply to homes acquired after December 31, 2013.”

Effective Date of 2013 Amendment

Pub. L. 112–240, title IV, § 408(c), Jan. 2, 2013, 126 Stat. 2342, provided that: “The amendments made by this section [amending this section] shall apply to homes acquired after December 31, 2011.”

Effective Date of 2010 Amendment

Pub. L. 111–312, title VII, § 703(b), Dec. 17, 2010, 124 Stat. 3311, provided that: “The amendment made by this section [amending this section] shall apply to homes acquired after December 31, 2009.”

Effective Date

Section applicable to qualified new energy efficient homes acquired after Dec. 31, 2005, in taxable years ending after such date, see section 1332(f) of Pub. L. 109–58, set out as an Effective Date of 2005 Amendments note under section 38 of this title.