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Department of the Treasury
Internal Revenue Service
Instructions for Form 8908

(Rev. January 2023)
Energy Efficient Home Credit

Section references are to the Internal Revenue Code eligible contractor with respect to the home. For example,
unless otherwise noted. if the person that hires a third-party contractor to construct
the home owns and has the basis in the home during
construction, the person that hires the third-party
General Instructions
contractor is the eligible contractor and the third-party
Future Developments contractor isn’t an eligible contractor.

For the latest information about developments related to Qualified New Energy Efficient Home
Form 8908 and its instructions, such as legislation
enacted after they were published, go to IRS.gov/ A qualified new energy efficient home is a dwelling unit
Form8908. located in the United States, whose construction is
substantially completed after August 8, 2005, and sold or
What’s New leased to another person after 2005 but before 2033, for
use as a residence. The home must be certified and meet
Credit extension. The Inflation Reduction Act of 2022 certain energy saving requirements. Construction includes
(IRA 2022) extended the energy efficient home credit to substantial reconstruction and rehabilitation.
cover qualified new energy efficient homes sold or leased
after 2021 and before 2033. Energy Saving Requirements
Credit increase and modification. IRA 2022 also The credit amount is based on the extent to which each
increased and modified the credit for certain homes sold new energy efficient home meets the energy saving
or leased after 2022. requirements discussed below.
50% energy efficient standard (for homes sold or
Purpose of Form leased before 2023). The credit is $2,000 for a dwelling
Eligible contractors use Form 8908 to claim a credit for unit that is certified to have an annual level of heating and
each qualified energy efficient home sold or leased to cooling energy consumption at least 50% below the
another person during the tax year for use as a residence. annual level of heating and cooling energy consumption of
The credit is based on the energy saving requirements of a comparable dwelling unit and has building envelope
the home. The credit is part of the general business credit. component improvements that account for at least 1/5 of
Partnerships and S corporations must file this form to the 50% reduction in energy consumption. A
claim the credit. All other taxpayers aren’t required to manufactured home meeting the requirements described
complete or file this form if their only source for this credit above and the Federal Manufactured Home Construction
is a partnership or an S corporation. Instead, they can and Safety Standards (FMHCSS) requirements (see 24
report this credit directly on line 1p in Part III of Form 3800, C.F.R. part 3280) is also eligible for the $2,000 credit.
General Business Credit. Comparable dwelling unit. A comparable dwelling
See section 45L for more information. unit:
• Is constructed in accordance with the standards of
What Revision To Use chapter 4 of the 2006 International Energy Conservation
Use the January 2023 revision of Form 8908 for tax years Code as such Code (including supplements) was in effect
beginning in 2022 or later, until a later revision is issued. on January 1, 2006;
Use prior revisions of the form and instructions for earlier • Has air conditioners with a Seasonal Energy Efficiency
tax years. All revisions are available at IRS.gov/ Ratio (SEER) of 13, measured in accordance with 10
Form8908. C.F.R. 430.23(m); and
• Has heat pumps with a SEER of 13 and a Heating
Who May Claim the Credit Seasonal Performance Factor (HSPF) of 7.7, measured in
Eligible contractors may claim the credit for new energy accordance with 10 C.F.R. 430.23(m).
efficient homes that are acquired by sale or lease by an 30% energy efficient standard (for homes sold or
individual from that contractor during the tax year for use leased before 2023). The credit is $1,000 for a
as a residence. manufactured home that doesn’t meet the 50% energy
saving requirement but is certified to have an annual
Definitions level of heating and cooling energy consumption at least
30% below the annual level of heating and cooling energy
Eligible Contractor
consumption of a comparable dwelling unit (discussed
An eligible contractor is the person that constructed a above) and:
qualified energy efficient home (or produced a qualified • Meets FMHCSS requirements, and
energy efficient home that is a manufactured home). A
person must own and have a basis in the qualified energy
efficient home during its construction to qualify as an

Jan 30, 2023 Cat. No. 66390D

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• Has building envelope component improvements that            meets the requirements of section 45L(c) (as in effect for 
account for at least 1/3 of the 30% reduction in energy        homes sold or leased before 2023) before claiming the 
consumption, or                                                section 45L credit. The certification will be treated as 
• Meets the current requirements established by the            satisfying the requirements of section 45L(c) if all the 
Administrator of the Environmental Protection Agency           construction has been performed in a manner consistent 
under the Energy Star Labeled Homes program.                   with the design specifications provided to the eligible 
  Heating and cooling energy and cost savings must be          certifier and the certification contains all of the information 
calculated using the procedures described in Residential       required by section 3 of Notice 2008-35, available at 
Energy Services Network (RESNET) Publication 001-16,           IRS.gov/irb/2008-12_IRB#NOT-2008-35; or, for 
or an equivalent calculation procedure. You can access         manufactured homes, section 3 or section 4 of Notice 
RESNET publications at http://staging.resnet.us/               2008-36, available at IRS.gov/irb/
professional/standards/tax_credits.                            2008-12_IRB#NOT-2008-36.
Zero Energy Ready Home Program requirement (for                      For homes sold or leased after 2022, an eligible 
homes sold or leased after 2022).   A dwelling unit            contractor must obtain any certification(s) the dwelling unit 
meets this requirement if the dwelling unit is certified as a  needs to meet the applicable program requirement(s) 
zero energy ready home under the Zero Energy Ready             referred to in section 45L(c) before claiming the section 
Home Program of the Department of Energy as in effect          45L credit. These program requirements are discussed 
on January 1, 2023 (or any successor program                   earlier. Certification information is available on the 
determined by the Secretary of the Treasury).                  referenced websites.
  Information about this program is available at 
www.energy.gov.                                                Specific Instructions
Single-family home requirements (for homes sold or 
leased after 2022). A dwelling unit meets these                Line 1
requirements if the dwelling unit meets:                       For each home sold or leased before 2023 that meets the 
• The Energy Star Single-Family New Homes National             50% energy efficient standard, the allowable credit is 
Program Requirements 3.1; and                                  $2,000.
• The Energy Star Single-Family New Homes Program                    Reduce the expenses incurred in the construction of 
Requirements in effect on January 1, 2023, which are           each new home by the amount of the credit. Expenses 
applicable for the location of the dwelling unit; or           taken into account for either the rehabilitation credit or 
• The Energy Star Manufactured Home National Program           energy credit part of the investment tax credit must not 
Requirements in effect on January 1, 2023.                     again be considered in determining the energy efficient 
  Information about Energy Star programs is available at       home credit. See section 45L(f).
www.energystar.gov/partner_resources/residential_new.
                                                               Line 2
Multi-family home requirements (for homes sold or 
leased after 2022). A dwelling unit meets these                For each manufactured home sold or leased before 2023 
requirements if the dwelling unit meets:                       that meets the 30% energy efficient standard, the 
• The Energy Star Multi-Family New Construction                allowable credit is $1,000.
National Program Requirements in effect on January 1,                Reduce the expenses incurred in the construction of 
2023; and                                                      each new home by the amount of the credit. Expenses 
• The Energy Star Multi-Family New Construction                taken into account for either the rehabilitation credit or 
Regional Program Requirements in effect on January 1,          energy credit part of the investment tax credit must not 
2023, which are applicable for the location of the dwelling    again be considered in determining the energy efficient 
unit.                                                          home credit. See section 45L(f).
  Information about Energy Star programs is available at 
www.energystar.gov/partner_resources/residential_new.          Line 3
  Prevailing wage requirements (for multi-family               The credit is $2,500 for each home sold or leased after 
homes sold or leased after 2022).   The prevailing wage        2022 and eligible to participate in the:
requirements with respect to any qualifying residence are          • Energy Star Residential New Construction Program that 
that the eligible contractor shall ensure that any laborers    meets the Single-Family Home Requirements but is not 
and mechanics employed by the eligible contractor or any       certified as a Zero Energy Ready Home,
subcontractor in the construction of such residence shall          • Energy Star Manufactured New Homes Program that 
be paid wages at rates not less than the prevailing rates      meets the Single-Family Home Requirements but is not 
for construction, alteration, or repair of a similar character certified as a Zero Energy Ready Home, or
in the locality in which such residence is located as most         • Energy Star Multi-Family New Construction Program 
recently determined by the Secretary of Labor. For details,    that meets the prevailing wage requirements and the 
see Notice 2022-61, 2022-52 I.R.B. 560, available at           Multi-Family Home Requirements but is not certified as a 
IRS.gov/irb/2022-52_IRB#NOT-2022-61.                           Zero Energy Ready Home.
                                                                     Generally, reduce the expenses incurred in the 
Certification
                                                               construction of each new home by the amount of the 
For homes sold or leased before 2023, an eligible              credit. However, do not reduce the expenses when 
contractor must obtain a certification that the dwelling unit  determining the adjusted basis of a building for purposes 

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of the low-income housing credit. Also, expenses taken determining the adjusted basis of a building for purposes
into account for either the rehabilitation credit or energy of the low-income housing credit. Also, expenses taken
credit part of the investment tax credit must not again be into account for either the rehabilitation credit or energy
considered in determining the energy efficient home credit part of the investment tax credit must not again be
credit. See sections 45L(e) and (f). considered in determining the energy efficient home
credit. See sections 45L(e) and (f).
Line 4
The credit is $5,000 for each home sold or leased after Line 6
2022 and eligible to participate in the: The credit is $1,000 for each home sold or leased after
• Energy Star Residential New Construction Program and 2022 and eligible to participate in the Energy Star
is certified as a Zero Energy Ready Home, Multi-Family New Construction Program that is certified as
• Energy Star Manufactured New Homes Program and is a Zero Energy Ready Home but does not meet the
certified as a Zero Energy Ready Home, or prevailing wage requirements.
• Energy Star Multi-Family New Construction Program
that meets the prevailing wage requirements and is Generally, reduce the expenses incurred in the
certified as a Zero Energy Ready Home. construction of each new home by the amount of the
credit. However, do not reduce the expenses when
Generally, reduce the expenses incurred in the
determining the adjusted basis of a building for purposes
construction of each new home by the amount of the
of the low-income housing credit. Also, expenses taken
credit. However, do not reduce the expenses when
into account for either the rehabilitation credit or energy
determining the adjusted basis of a building for purposes
credit part of the investment tax credit must not again be
of the low-income housing credit. Also, expenses taken
considered in determining the energy efficient home
into account for either the rehabilitation credit or energy
credit. See sections 45L(e) and (f).
credit part of the investment tax credit must not again be
considered in determining the energy efficient home Line 7
credit. See sections 45L(e) and (f).
Enter total energy efficient home credits from:
Line 5 • Schedule K-1 (Form 1065), Partner’s Share of Income,
Deductions, Credits, etc., box 15 (code P); and
The credit is $500 for each home sold or leased after
2022 and eligible to participate in the Energy Star • Schedule K-1 (Form 1120-S), Shareholder’s Share of
Income, Deductions, Credits, etc., box 13 (code P).
Multi-Family New Construction Program that meets the
Multi-Family Home Requirements but is not certified as a Partnerships and S corporations report the above
Zero Energy Ready Home and does not meet the credits on line 7. All other filers figuring a separate credit
prevailing wage requirements. on earlier lines also report the above credits on line 7. All
Generally, reduce the expenses incurred in the others not using earlier lines to figure a separate credit
construction of each new home by the amount of the can report the above credits directly on Form 3800, Part
credit. However, do not reduce the expenses when III, line 1p.

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.

Instructions for Form 8908 (Rev. January 2023) -3-

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