Agency: Department of the Treasury
Description:
Tax credit for certain energy efficient homes, those meeting the Energy Star requirements or the Zero Energy Ready Home standards.
Bill Section:
13304
US Code:
26 USC 45L
New or Existing:
Existing
Potential Cost:
$2,043,000,000
Timeline:
2022 – 2032
Implementation Status/Rulemaking:
On Sept. 27, 2023, the Internal Revenue Service issued Notice 2023-65 which provides guidance on the new energy efficient home credit as amended by the Inflation Reduction Act: Source
TCS Notes:
Newly constructed single family homes will be eligible for a credit of $2,500 to $5,000. The credit for newly constructed multi-family homes ranges from $500 to $1000, but increases to $2,500 to $5,000 if certain wage requirements are met.