I.R.C. § 45L(a) Allowance Of Credit
I.R.C. § 45L(a)(1) In General —
For purposes of section 38, in the case of an eligible contractor, the new energy efficient home credit for
the taxable year is the applicable amount for each qualified new energy efficient
home which is—
I.R.C. § 45L(a)(1)(A) —
constructed by the eligible contractor, and
I.R.C. § 45L(a)(1)(B) —
acquired by a person from such eligible contractor for use as a residence during
the taxable year.
I.R.C. § 45L(a)(2) Applicable Amount —
For purposes of paragraph (1), the applicable amount
is an amount equal to—
I.R.C. § 45L(a)(2)(A) —
in the case of a dwelling unit described in paragraph (1) or (2) of subsection (c), $2,000, and
I.R.C. § 45L(a)(2)(B) —
in the case of a dwelling unit described in paragraph (3) of subsection (c),
$1,000.
I.R.C. § 45L(b) Definitions —
For purposes of this section—
I.R.C. § 45L(b)(1) Eligible Contractor —
The term “eligible contractor” means—
I.R.C. § 45L(b)(1)(A) —
the person who constructed the qualified new energy efficient home, or
I.R.C. § 45L(b)(1)(B) —
in the case of a qualified new energy efficient home which is a manufactured home,
the manufactured home producer of such home.
I.R.C. § 45L(b)(2) Qualified New Energy Efficient Home —
The term “qualified new energy efficient home”
means a dwelling unit—
I.R.C. § 45L(b)(2)(A) —
located in the United States,
I.R.C. § 45L(b)(2)(B) —
the construction of which is substantially completed after the date of the enactment
of this section, and
I.R.C. § 45L(b)(2)(C) —
which meets the energy saving requirements of subsection (c).
I.R.C. § 45L(b)(3) Construction —
The term “construction” includes substantial
reconstruction and rehabilitation.
I.R.C. § 45L(c) Energy Saving Requirements —
A dwelling unit meets the energy saving requirements of this subsection if such
unit is—
I.R.C. § 45L(c)(1) —
certified—
I.R.C. § 45L(c)(1)(A) —
to have a level of annual heating and cooling energy consumption which is at least
50 percent below the annual level of heating and cooling energy consumption of a
comparable dwelling unit—
I.R.C. § 45L(c)(1)(A)(i) —
which is constructed in accordance with the standards of chapter 4 of the 2006 International
Energy Conservation Code, as such Code (including supplements) is in effect on January
1, 2006, and
I.R.C. § 45L(c)(1)(A)(ii) —
for which the heating and cooling equipment efficiencies correspond to the minimum
allowed under the regulations established by the Department of Energy pursuant to
the National Appliance Energy Conservation Act of 1987 and in effect
at the time of completion of construction, and
I.R.C. § 45L(c)(1)(B) —
to have building envelope component improvements account for at least 1/5 of such
50 percent,
I.R.C. § 45L(c)(2) —
a manufactured home which conforms to Federal Manufactured Home Construction and
Safety Standards (part 3280 of title 24, Code of Federal Regulations) and which
meets the requirements of paragraph (1),
or
I.R.C. § 45L(c)(3) —
a manufactured home which conforms to Federal Manufactured Home Construction and
Safety Standards (part 3280 of title 24, Code of Federal Regulations) and which—
I.R.C. § 45L(c)(3)(A) —
meets the requirements of paragraph (1) applied by substituting “30
percent” for “50 percent” both places it appears therein and by substituting “1/3”
for “1/5”
in subparagraph (B) thereof,
or
I.R.C. § 45L(c)(3)(B) —
meets the requirements established by the Administrator of the Environmental Protection
Agency under
the Energy Star Labeled Homes program.
I.R.C. § 45L(d) Certification
I.R.C. § 45L(d)(1) Method Of Certification —
A certification described in subsection (c) shall be made in accordance
with guidance prescribed by the Secretary, after consultation with the Secretary
of Energy. Such guidance shall specify procedures and methods for calculating energy
and cost savings.
I.R.C. § 45L(d)(2) Form —
Any certification described in subsection (c) shall be made in writing in a manner which specifies in readily verifiable fashion
the energy
efficient building envelope components and energy efficient heating or cooling
equipment installed and their respective rated energy efficiency performance.
I.R.C. § 45L(e) Basis Adjustment —
For purposes of this subtitle, if a credit is allowed
under this section in connection with any expenditure for any property, the increase
in the basis of such property which would (but for this subsection) result from
such expenditure shall be reduced by the amount of the credit so determined.
I.R.C. § 45L(f) Coordination With Investment Credit —
For purposes of this section, expenditures taken into account under section 47 or 48(a) shall not be taken into account under this section.
I.R.C. § 45L(g) Termination —
This section shall not apply to any qualified new energy
efficient home acquired after December 31, 2021.
(Added by Pub. L. 109-58, title XIII, Sec. 1332(a), Aug. 8, 2005, 119 Stat. 594; and amended by Pub. L. 109-432, div. A, title II, Sec. 205, Dec. 20, 2006, 120 Stat. 2922; Pub. L. 110-172, Sec. 11(a)(7), Dec. 29, 2007, 121 Stat. 2473; Pub. L. 110-343, div. B, title III, Sec. 304, Oct. 3, 2008, 122 Stat. 3765; Pub. L. 111-312, Sec. 703, Dec. 17, 2010, 124 Stat. 3296; Pub. L. 112-240, title IV, Sec. 408, Jan. 2, 2013, 126 Stat. 2313; Pub. L. 113-295, Div. A, title I, Sec. 156(a), Dec. 19, 2014, 128 Stat. 4010; Pub. L. 114-113, Div. Q, title I, Sec. 188(a), Dec. 18, 2015; Pub. L. 115-123, Div. D, title I, Sec. 40410(a), Feb. 9, 2018, 132 Stat 64; Pub. L. 116-94, Div. Q, title I, Sec. 129(a), Dec. 20, 2019; Pub. L. 116-260, Div. EE, title I, Sec. 146(a), Dec. 27, 2020, 134 Stat. 1182.)
BACKGROUND NOTES
AMENDMENTS
2020 -- Subsec. (g). Pub. L. 116-260, Div. EE, title I, Sec. 146(a), amended subsec. (g) by substituting “December 31,
2021”
for “December 31, 2020”.
2019 -- Subsec. (g). Pub. L. 116-94, Sec. 129(a), amended subsec. (g) by substituting “December 31, 2020” for “December 31, 2017”.
2018 - Subsec. (g). Pub. L. 115-123, Sec. 40410(a), amended Subsec. (g) by substituting “December 31, 2017” for “December 31, 2016”.
2015 - Subsec. (g). Pub. L. 114-113, Div. Q, Sec. 188(a), amended subsec. (g) by substituting “December 31, 2016” for
“December 31, 2014”.
2014 - Subsec. (g). Pub. L. 113-295, Div. A, Sec. 156(a), amended subsec.
(g) by substituting “December 31, 2014” for “December 31, 2013”.
2010 - Subsec. (c)(1)(A)(i). Pub. L. 112-240, Sec. 408(b), amended clause (i) by substituting “2006 International Energy Conservation Code,
as such Code (including supplements) is in effect on January 1, 2006” for “2003 International
Energy Conservation Code, as such Code (including supplements) is in effect on the
date of the enactment of this section”.
Subsec. (g). Pub. L. 112-240, Sec. 408(a), amended subsec. (g) by substituting “December 31, 2013” for “December 31, 2011”.
2010
- Subsec. (g). Pub. L. 111-312, Sec. 703(a), amended subsec. (g) by substituting “December 31, 2011” for “December 31, 2009”.
2008 - Subsec. (g). Pub. L. 110-343, div. B, Sec. 304, amended subsec. (g) by substituting “December 31, 2009”
for “December 31, 2008”.
2007 — Subsec. (c)(2). Pub. L. 110-172, Sec. 11(a)(7), amended par. (2) by substituting “part 3280” for “section 3280”.
Subsec. (c)(3). Pub. L. 110-172, Sec. 11(a)(7), amended par. (3) by substituting “part 3280” for “section 3280”.
2006 — Subsec. (g). Pub. L. 109-432, Sec. 205, amended subsec. (g) by substituting “December 31, 2008” for “December 31, 2007”.
EFFECTIVE DATE OF 2020 AMENDMENT
Amendment by Pub. L. 116-260, Div. EE, Sec. 146(a), effective for homes acquired after December 31, 2020.
EFFECTIVE DATE OF 2019 AMENDMENT
Amendment by Pub. L. 116-94, Sec. 129(a), effective for homes acquired after December 31, 2017.
EFFECTIVE DATE OF 2018 AMENDMENTS
Amendment by Pub. L. 115-123, Sec. 40410(a), effective for homes acquired after December 31, 2016.
EFFECTIVE DATE OF 2015 AMENDMENT
Amendment by Pub. L. 114-113, Div. Q, Sec. 188(a), effective for homes acquired after December 31, 2014.
EFFECTIVE DATE OF 2014 AMENDMENT
Amendment by Pub. L. 113-295, Div. A, Sec. 156(a), effective for homes acquired after December 31, 2013.
EFFECTIVE DATE OF 2013 AMENDMENTS
Amendments by Sec. 408 of Pub. L. 112-240 effective for homes acquired after December 31, 2011.
EFFECTIVE DATE OF 2010 AMENDMENT
Amendment by Sec. 703 of Pub. L. 111-312 effective for homes acquired after December 31, 2009.
EFFECTIVE DATE OF 2008 AMENDMENT
Amendment by Div. B, Sec. 304 of Pub. L. 110-343 effective on the date of the enactment of this Act [Enacted: Oct. 3, 2008].
EFFECTIVE DATE OF 2007 AMENDMENTS
Amendments by Sec. 11(a)(7) of Pub. L. 110-172 effective on the date of the enactment of this Act [Enacted: Dec. 29, 2007].
EFFECTIVE DATE OF 2006 AMENDMENT
Amendment by Sec. 205 of Pub. L. 109-432 effective on the date of the enactment of this Act [Enacted: Dec. 20, 2006].
EFFECTIVE DATE
Effective for qualified new energy efficient homes acquired after December 31, 2005,
in taxable years ending after such date.
