RESIDENTIAL / NEW CONSTRUCTION

Builder New Home Tax Credit (45L)

Who is this tax credit for?

This credit is available to builders of qualified new energy efficient homes

Who is this tax credit for?

This credit is available to builders of qualified new energy efficient homes

How does the credit work?

45L Builder New Energy Efficient Home Tax Credit

ENERGY STAR

ENERGY STAR

meeting prevailing wage requirements

DOE Zero Energy Home Standard

DOE Zero Energy Home Standard

Meeting prevailing wage requirements

Single Family

$2,500

$2,500

$5,000

$5,000

Manufactured Housing

$2,500

$2,500

$5,000

$5,000

Multi Family

$500

$2,500

$1,000

$5,000

Qualifying homes must meet ENERGY STAR 3.1 prior to 2025. Beginning January 1, 2025, qualifying homes must meet ENERGY STAR 3.2

Manufactured homes must meet 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 credit claim

What are the insulation requirements for single family homes qualifying for the 45L tax credit?

Present – December 31, 2024

January 1, 2025 – December 31, 2032

ENERGY STAR

ENERGY STAR Version 3.1
  • Insulation levels modeled to 2012 IECC/Mandatory 2009 IECC insulation levels
  • Grade I installation
  • Infiltration rates modeled at: 4 ACH50 in CZs 1,2 / 3 ACH50 in CZs 3-8
ENERGY STAR Version 3.2
  • Insulation levels modeled to 2021 IECC / Mandatory 2021 IECC insulation levels
  • Grade I installation per RESNET / ICC 301
  • Infiltration rate modeled at 3 ACH50

Present – December 31, 2023

January 1, 2024 – December 31, 2032

DOE Zero Energy Home Program

Version 1, Revision 08
  • Ceiling, wall, floor, and slab insulation shall meet or exceed 2015 IECC levels
  • Grade I installation
  • Infiltration: 3.0 ACH50 in CZs 1-2 / 5 ACH50 in CZs 3-4 / 2 ACH50 in CZs 5-7
Version 2
  • Ceiling, wall, floor, and slab insulation meet or exceed 2021 IECC UA
  • Infiltration: CZs 1-2: 2.75 / CZ 3, 4A, 4B: 2.25 / CZs 4C, 5-7: 2.0 / CZ 8: 1.5

How long does the credit last?

Credit expires December 31, 2032

How long does the credit last?

Credit expires December 31, 2032

What is Prevailing Wage?

Section 45L New Energy Efficient Home Credit for multi-family housing must meet prevailing wage to qualify for elevated credit amount.

To meet the prevailing wage requirement laborers and mechanics employed by the taxpayer must be paid wages at rates not less than the prevailing rates for construction or alteration of a similar character in the locality where the facility is located as most recently determined by the Secretary of Labor.

Updated locality prevailing wage found at:

Applies to construction beginning on or after January 30, 2023

Frequently asked questions on prevailing wage:

INSULATION INCENTIVES

NAIMA is the association for North American manufacturers of fiber glass, rock wool, and slag wool insulation products. Its role is to promote energy efficiency and environmental preservation through the use of fiber glass, rock wool, and slag wool insulation, and to encourage the safe production and use of these materials. Through the Insulation Institute™, we leverage the collective insulation expertise of our organization and our members to empower homeowners and professionals to make informed insulation choices. Our mission is to enable a more comfortable, energy-efficient and sustainable future through insulation — and we are constantly working with building professionals, homeowners, government agencies, and public interest, energy and environmental groups to realize that vision.

Discover more insulation knowledge at InsulationInstitute.org

This website is offered for informational purposes only and neither guarantees nor predicts your qualifications to receive federal grants.