U. S. Business Income Tax Return

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Instructions for Form 8908
(Rev. December 2025)

Energy Efficient Home Credit
Section references are to the Internal Revenue Code
unless otherwise noted.

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.
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.

Oct 22, 2025

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/irsdrop/n-23-65.pdf.
Information about Energy Star certifier requirements is
available at www.energystar.gov/partner_resources/
residential_new/working/energy_rating_cos.

Instructions for Form 8908 (Rev. 12-2025) Catalog Number 66390D
Department of the Treasury Internal Revenue Service www.irs.gov

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What’s New

Who May Claim the Credit

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Information about ZERH certifiers is available at
www.energy.gov/eere/buildings/doe-recognized-zerhcertification-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.
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-readyhome-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,
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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
Instructions for Form 8908 (Rev. December 2025)

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Energy Saving Requirements

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-taxcredit-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.

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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.

Instructions for Form 8908 (Rev. December 2025)

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.
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at www.energystar.gov/about/federal-tax-credits/ss-45ltax-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.

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).

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

Line 7

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.

4

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 (Rev. December 2025)

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Instructions for Form 8908 (Rev. December 2025)

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