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Department of the Treasury
Internal Revenue Service
Instructions for Form 8908

(Rev. December 2023)
Energy Efficient Home Credit

Section references are to the Internal Revenue Code A qualified new energy efficient home that is a
unless otherwise noted. 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
General Instructions
from an eligible contractor for use as a residence if the
Future Developments person that produced the manufactured home sells it to an
intermediary (for example, a dealer of manufactured
For the latest information about developments related to
homes) and the intermediary (or the last of multiple
Form 8908 and its instructions, such as legislation
intermediaries) sells or leases the manufactured home to
enacted after they were published, go to IRS.gov/
another person for use as a residence. See section 7.03
Form8908.
of Notice 2023-65 for a safe harbor permitting an eligible
What’s New contractor to rely on a dealer's statement concerning a
sale by the dealer of manufactured homes.
Credit increase and modification. The Inflation
Reduction Act of 2022 increased and modified the credit Eligible Contractor
for certain homes sold or leased after 2022. An eligible contractor is the person that constructed the
qualified new energy efficient home and owned and had a
Purpose of Form
basis in the home during its construction, or, in the case of
Eligible contractors use Form 8908 to claim a credit for a qualified new energy efficient home that is a
each qualified new energy efficient home sold or leased to manufactured home, the person that produced the home
another person during the tax year for use as a residence. and owned and had a basis in the home during its
The credit is based on the energy saving requirements of production. For example, if a person that owns and has a
the home. The credit is part of the general business credit. basis in a qualified new energy efficient home during its
Partnerships and S corporations must file this form to construction hires a third-party contractor to construct the
claim the credit. All other taxpayers aren’t required to home, the person that hires the third-party contractor is
complete or file this form if their only source for this credit the eligible contractor and the third-party contractor isn't
is a partnership or an S corporation. Instead, they can an eligible contractor.
report this credit directly on line 1p in Part III of Form 3800,
General Business Credit. Qualified New Energy Efficient Home
A qualified new energy efficient home is a dwelling unit
For more information, see section 45L and Notice located in the United States, whose construction is
2023-65, 2023-42 I.R.B. 1067, available at IRS.gov/irb/ substantially completed after August 8, 2005, and sold or
2023-42_IRB#NOT-2023-65. leased to another person before 2033, for use as a
residence. The home must be certified and meet certain
Which Revision To Use energy saving requirements. Construction includes
Use the December 2023 revision of Form 8908 for tax substantial reconstruction and rehabilitation.
years beginning in 2023 or later, until a later revision is
issued. Use prior revisions of the form and instructions for The term “United States” includes all 50 states and the
earlier tax years. All revisions are available at IRS.gov/ District of Columbia. The term does not include U.S.
Form8908. territories.

Who May Claim the Credit Energy Saving Requirements
An eligible contractor may claim the credit for a qualified To meet the energy saving requirements, a qualified new
new energy efficient home that is acquired by an individual energy efficient home must be eligible to participate in one
from that contractor during the tax year for use as a of the following Energy Star programs.
residence. • The Energy Star Residential New Construction
Program.
Definitions • The Energy Star Manufactured New Homes Program.
• The Energy Star Multifamily New Construction
Acquired Program.
The term "acquired" includes purchased. Also, a qualified For more information about these programs, see the
new energy efficient home that is leased by a person from Energy Star Program Requirements webpage at
an eligible contractor for use as a residence during the tax www.energystar.gov/partner_resources/residential_new/
year is considered acquired. A qualified new energy program_reqs.
efficient home is not acquired by a person from an eligible
contractor if the eligible contractor retains the home for
use as a residence.

Dec 21, 2023 Cat. No. 66390D

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  The credit amount is based on the extent to which each    • The Energy Star Multifamily New Construction Regional 
qualified new energy efficient home meets the energy        Program Requirements in effect on January 1, 2023, 
saving requirements discussed below.                        which are applicable to the location of the dwelling unit.
Zero energy ready home.   A zero energy ready home is         A dwelling unit certified under a currently effective 
a dwelling unit certified as a zero energy ready home       version of one of the Energy Star Multifamily Home 
under the Zero Energy Ready Home (ZERH) Program of          Program Requirements by definition is also certified under 
the Department of Energy as in effect on January 1, 2023    any prior version of the same program requirements. For 
(or any successor program determined by the Secretary of    example, a dwelling unit certified under the Energy Star 
the Treasury). See section 4.04(2) of Notice 2023-65 for    Multifamily New Construction National Program 
more information about the ZERH program in effect and       Requirements 1.2 is also considered certified under the 
the determination of any successor program.                 Energy Star Multifamily New Construction National 
                                                            Program Requirements 1.1.
  Information about this program is available at 
www.energy.gov/eere/buildings/doe-zero-energy-ready-          The EPA will deem a dwelling unit certified under 
home-zerh-program-requirements.                             certain Energy Star Multifamily New Construction National 
                                                            Program Requirements to also be certified under certain 
Single-family home requirements (Energy Star Sin-           Energy Star Multifamily New Construction Regional 
gle-Family Home Program Requirements).      A dwelling      Program Requirements, and vice versa. To determine 
unit eligible to participate in the Energy Star Residential which deemed certifications correspond to which Energy 
New Construction Program or the Energy Star                 Star program requirements, see the Energy Star webpage 
Manufactured New Homes Program meets these                  (address provided below).
requirements if the dwelling unit meets:
• The Energy Star Single-Family New Homes National            If the dwelling unit is not located in California, Florida, 
Program Requirements 3.1; and                               Hawaii, Oregon, or Washington, then the most recent 
• The Energy Star Single-Family New Homes Program           Energy Star Multifamily New Construction Program 
Requirements in effect on January 1, 2023, which are        Requirements applicable to the location of the dwelling 
applicable to the location of the dwelling unit; or         unit will be the effective Energy Star Multifamily New 
• The Energy Star Manufactured Home National Program        Construction National Program Requirements.
Requirements in effect on January 1, 2023.                    For more information, see the Energy Star webpage at 
  A dwelling unit certified under a currently effective     www.energystar.gov/about/federal_tax_credits/
version of one of the Energy Star Single-Family Home        federal_tax_credit_archives/tax_credits_home_builders.
Program Requirements by definition is also certified under    Prevailing wage requirements for multifamily 
any prior version of the same program requirements. For     homes. The prevailing wage requirements with respect to 
example, a dwelling unit certified under the Energy Star    any qualifying residence are that the eligible contractor 
Single-Family New Homes National Program                    must ensure that any laborers and mechanics employed 
Requirements 3.2 is also considered certified under the     by the eligible contractor or any subcontractor in the 
Energy Star Single-Family New Homes National Program        construction of such residence are paid wages at rates not 
Requirements 3.1.                                           less than the prevailing rates for construction, alteration, or 
                                                            repair of a similar character in the locality in which such 
  The Environmental Protection Agency (EPA) will deem 
                                                            residence is located as most recently determined by the 
a dwelling unit certified under certain Energy Star 
                                                            Secretary of Labor.
Single-Family New Homes National Program 
Requirements to also be certified under certain Energy        For more information, see the following.
Star Single-Family New Homes Regional Program               • For initial guidance, see Notice 2022-61, 2022-52 I.R.B. 
Requirements, and vice versa. To determine which            560, available at IRS.gov/irb/2022-52_IRB#NOT-2022-61.
deemed certifications correspond to which Energy Star       • Proposed regulations are in Internal Revenue Bulletin 
program requirements, see the Energy Star webpage           2023-39, available at IRS.gov/irb/
(address provided below).                                   2023-39_IRB#REG-100908-23.
                                                            • Any future guidance provided by final regulations will be 
  If a dwelling unit is not located in California, Florida, 
                                                            covered as discussed under Future Developments, earlier.
Hawaii, Oregon, or Washington, then the most recent 
                                                            • Frequently asked questions about the prevailing wage 
Energy Star Single-Family New Homes Program 
                                                            requirements are available at IRS.gov/credits-deductions/
Requirements applicable to the location of the dwelling 
                                                            frequently-asked-questions-about-the-prevailing-wage-
unit will be the effective Energy Star Single-Family New 
                                                            and-apprenticeship-under-the-inflation-reduction-act.
Homes National Program Requirements.
  For more information, see the Energy Star webpage at      Certification
www.energystar.gov/about/federal_tax_credits/               An eligible contractor must obtain any certification(s) the 
federal_tax_credit_archives/tax_credits_home_builders.      dwelling unit needs to meet the applicable program 
Multifamily home requirements (Energy Star Multi-           requirement(s) referred to in section 45L(c) before 
family Home Program Requirements).      A dwelling unit     claiming the energy efficient home credit. These program 
eligible to participate in the Energy Star Multifamily New  requirements are discussed earlier. Certification 
Construction Program meets these requirements if the        information is available on the referenced websites.
dwelling unit meets:
• The Energy Star Multifamily New Construction National 
Program Requirements in effect on January 1, 2023; and

2                                                                  Instructions for Form 8908 (Rev. December 2023)

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• The number of laborers and mechanics who received
Specific Instructions correction payments as the result of any failure to pay the
applicable prevailing wage rates.
Line 1 • The amount of penalty payments owed with respect to
The credit is $2,500 for each home sold or leased after any failures to pay the applicable prevailing wage rates.
2022 and eligible to participate in the: You must maintain and preserve sufficient
• Energy Star Residential New Construction Program that ! records, including books of account or records of
meets the single-family home requirements but is not CAUTION work performed by laborers who constructed the
certified as a zero energy ready home, or home, to substantiate that you meet the prevailing wage
• Energy Star Manufactured New Homes Program that requirements and to claim the increased tax benefit.
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
Generally, you must reduce the expenses incurred in
credit when figuring your basis in the property. However,
the construction of each new home by the amount of the
do not reduce the expenses by the amount of the credit
credit when figuring your basis in the property. However,
when figuring the adjusted basis of a building for purposes
do not reduce the expenses by the amount of the credit
of the low-income housing credit. Also, expenses taken
when figuring the adjusted basis of a building for purposes
into account for either the rehabilitation credit or the
of the low-income housing credit. Also, expenses taken
energy credit part of the investment tax credit must not be
into account for either the rehabilitation credit or the
taken into account when figuring the energy efficient home
energy credit part of the investment tax credit must not be
credit. See sections 45L(e) and (f).
taken into account when figuring the energy efficient home
credit. See sections 45L(e) and (f). Line 4
Line 2 The credit is $5,000 for each home sold or leased after
2022 and eligible to participate in the Energy Star
The credit is $5,000 for each home sold or leased after
Multifamily New Construction Program that meets the
2022 and eligible to participate in the:
prevailing wage requirements and is certified as a zero
• Energy Star Residential New Construction Program and
energy ready home.
is certified as a zero energy ready home, or
• Energy Star Manufactured New Homes Program and is You must attach additional information to your timely
certified as a zero energy ready home. filed return (including extensions) to substantiate that you
meet the prevailing wage requirements and to claim the
Generally, you must reduce the expenses incurred in increased credit amount for each home. You must attach a
the construction of each new home by the amount of the separate statement for each home. The statement must
credit when figuring your basis in the property. However, include the following information.
do not reduce the expenses by the amount of the credit • The location of the home.
when figuring the adjusted basis of a building for purposes • The applicable wage determinations for each
of the low-income housing credit. Also, expenses taken classification of laborer and mechanic that performed
into account for either the rehabilitation credit or the work on the construction of the home.
energy credit part of the investment tax credit must not be • The wages paid (including any correction payments as
taken into account when figuring the energy efficient home defined in section 45(b)(7)(B)(i)(I)) and hours worked for
credit. See sections 45L(e) and (f). each of the laborer or mechanic classifications engaged in
the construction of the home.
Line 3
• The number of laborers and mechanics who received
The credit is $2,500 for each home sold or leased after correction payments as the result of any failure to pay the
2022 and eligible to participate in the Energy Star applicable prevailing wage rates.
Multifamily New Construction Program that meets the • The amount of penalty payments owed with respect to
prevailing wage requirements and the multifamily home any failures to pay the applicable prevailing wage rates.
requirements but is not certified as a zero energy ready
home. You must maintain and preserve sufficient
records, including books of account or records of
You must attach additional information to your timely CAUTION! work performed by laborers who constructed the
filed return (including extensions) to substantiate that you home, to substantiate that you meet the prevailing wage
meet the prevailing wage requirements and to claim the requirements and to claim the increased tax benefit.
increased credit amount for each home. You must attach a
separate statement for each home. The statement must Generally, you must reduce the expenses incurred in
include the following information. the construction of each new home by the amount of the
• The location of the home. credit when figuring your basis in the property. However,
• The applicable wage determinations for each do not reduce the expenses by the amount of the credit
classification of laborer and mechanic that performed when figuring the adjusted basis of a building for purposes
work on the construction of the home. of the low-income housing credit. Also, expenses taken
• The wages paid (including any correction payments as into account for either the rehabilitation credit or the
defined in section 45(b)(7)(B)(i)(I)) and hours worked for energy credit part of the investment tax credit must not be
each of the laborer or mechanic classifications engaged in taken into account when figuring the energy efficient home
the construction of the home. credit. See sections 45L(e) and (f).

Instructions for Form 8908 (Rev. December 2023) 3

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Line 5 Generally, you must reduce the expenses incurred in
the construction of each new home by the amount of the
The credit is $500 for each home sold or leased after 2022 credit when figuring your basis in the property. However,
and eligible to participate in the Energy Star Multifamily do not reduce the expenses by the amount of the credit
New Construction Program that meets the multifamily when figuring the adjusted basis of a building for purposes
home requirements but is not certified as a zero energy of the low-income housing credit. Also, expenses taken
ready home and does not meet the prevailing wage into account for either the rehabilitation credit or the
requirements. energy credit part of the investment tax credit must not be
Generally, you must reduce the expenses incurred in taken into account when figuring the energy efficient home
the construction of each new home by the amount of the credit. See sections 45L(e) and (f).
credit when figuring your basis in the property. However,
do not reduce the expenses by the amount of the credit Line 7
when figuring the adjusted basis of a building for purposes Enter total energy efficient home credits from:
of the low-income housing credit. Also, expenses taken • Schedule K-1 (Form 1065), Partner’s Share of Income,
into account for either the rehabilitation credit or the Deductions, Credits, etc., box 15 (code AM); and
energy credit part of the investment tax credit must not be • Schedule K-1 (Form 1120-S), Shareholder’s Share of
taken into account when figuring the energy efficient home Income, Deductions, Credits, etc., box 13 (code AM).
credit. See sections 45L(e) and (f).
Partnerships and S corporations report the above
Line 6 credits on line 7. All other filers figuring a separate credit
The credit is $1,000 for each home sold or leased after on earlier lines also report the above credits on line 7. All
2022 and eligible to participate in the Energy Star others not using earlier lines to figure a separate credit
Multifamily New Construction Program that is certified as can report the above credits directly on Form 3800, Part
a zero energy ready home but does not meet the III, line 1p.
prevailing wage requirements.

Paperwork Reduction Act Notice. We ask for the information on this form to carry out the Internal Revenue laws of the
United States. You are required to give us the information. We need it to ensure that you are complying with these laws
and to allow us to figure and collect the right amount of tax.
You are not required to provide 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
for individual and business taxpayers filing this form is approved under OMB control number 1545-0074 and 1545-0123
and is included in the estimates shown in the instructions for their individual and business income tax return. The
estimated burden for all other taxpayers who file this form is shown below.

Recordkeeping. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2 hr., 9 min.
Learning about the law or the form. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 12 min.
Preparing and sending the form to the IRS . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 14 min.

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.

4 Instructions for Form 8908 (Rev. December 2023)

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