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New Energy Efficient Homes Credit – 26 U.S. Code § 45L

IRA Statuatory Location:


Tax Code Location:

26 U.S. Code § 45L

New or Modified Provision:

Modified and extended. The credit had previously expired at end of 2021.Retroactively extended with new rules effective for homes acquired after 2022.

Eligible Recipients:


Tribal Eligibility:



Funded by:

U.S. Department of Treasury


Provides a tax credit for construction of new energy efficienthomes Homebuilders
Direct Pay Eligibility:
Yes. Taxpayers claiming the Low-Income Housing Tax Credit do not have toreduce basis for 45L credits claimed.
Energy Community Bonus:

Relevant Announcements

Related Resources

Additional information is available on the Resources page.

Key Details

Period of Availability
Tax Mechanism:
Tax credit for homebuilders
Base Credit Amount:
$2,500 for new homes meeting Energy Star standards; $5,000 forcertified zero-energy ready homes. For multifamily, base amounts are $500 per unit for EnergyStar and $1000 per unit for zero-energy ready.
Bonus Credit Amount:
For multifamily homes, 5 times the base amount if prevailing wagerequirements are met. Initial guidance on the labor provisions is available here. (https://www.federalregister.gov/documents/2022/11/30/2022-26108/prevailing-wage-and-apprenticeship-initial-guidance-under-section-45b6bii-and-other-substantially)
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