Editor's Note:
Pub. L 117-169,
Sec. 13304, amended Sec. 45L with a delayed effective date as indicated
below.
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.
Editor's Note: Sec. 45L(a)(2), below,
before amendment by Pub. L 117-169,
Sec. 13304(b), is effective for dwelling units acquired before January
1, 2023.
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.
Editor's Note: Sec. 45L(a)(2), below,
after amendment by Pub. L 117-169,
Sec. 13304(b), is effective for dwelling units acquired after December
31, 2022.
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 which
is eligible to participate in the Energy Star Residential New Construction
Program or the Energy Star Manufactured New Homes program—
I.R.C. § 45L(a)(2)(A)(i) —
which meets the requirements of subsection (c)(1)(A) (and which does not
meet the requirements of subsection (c)(1)(B)),
$2,500, and
I.R.C. § 45L(a)(2)(A)(ii) —
which meets the requirements of subsection (c)(1)(B), $5,000, and
I.R.C. § 45L(a)(2)(B) —
in the case of a dwelling unit which
is part of a building eligible to participate in the Energy Star Multifamily
New Construction Program—
I.R.C. § 45L(a)(2)(B)(i) —
which meets the requirements of subsection (c)(1)(A) (and which does not
meet the requirements of subsection (c)(1)(B)),
$500, and
I.R.C. § 45L(a)(2)(B)(ii) —
which meets the requirements of subsection (c)(1)(B), $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.
Editor's Note: Sec. 45L(c), below, before
amendment by Pub. L 117-169, Sec.
13304(c), is effective for dwelling units acquired before January
1, 2023.
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.
Editor's Note: Sec. 45L(c), below, after amendment by Pub. L 117-169, Sec. 13304(c), is effective
for dwelling units acquired after December 31, 2022.
I.R.C. § 45L(c) Energy Saving Requirements
I.R.C. § 45L(c)(1) In General
I.R.C. § 45L(c)(1)(A) In General —
A dwelling unit meets the requirements of this subparagraph
if such dwelling unit meets the requirements of paragraph (2) or (3)
(whichever is applicable).
I.R.C. § 45L(c)(1)(B) Zero Energy Ready Home Program —
A dwelling unit meets the requirements of this subparagraph
if such dwelling unit is certified as a zero energy ready home under
the zero energy ready home program of the Department of Energy as
in effect on January 1, 2023 (or any successor program determined
by the Secretary).
I.R.C. § 45L(c)(2) Single-Family Home Requirements —
A dwelling unit meets the requirements of this paragraph
if—
I.R.C. § 45L(c)(2)(A) —
such dwelling unit meets—
I.R.C. § 45L(c)(2)(A)(i)
I.R.C. § 45L(c)(2)(A)(i)(I) —
in the case of a dwelling unit acquired
before January 1, 2025, the Energy Star Single-Family New Homes National
Program Requirements 3.1, or
I.R.C. § 45L(c)(2)(A)(i)(II) —
in the case of a dwelling unit acquired
after December 31, 2024, the Energy Star Single-Family New Homes National
Program Requirements 3.2, and
I.R.C. § 45L(c)(2)(A)(ii) —
the most recent Energy Star Single-Family
New Homes Program Requirements applicable to the location of such
dwelling unit (as in effect on the latter of January 1, 2023, or January
1 of two calendar years prior to the date the dwelling unit was acquired),
or
I.R.C. § 45L(c)(2)(B) —
such dwelling unit meets the most recent
Energy Star Manufactured Home National program requirements as in
effect on the latter of January 1, 2023, or January 1 of two calendar
years prior to the date such dwelling unit is acquired.
I.R.C. § 45L(c)(3) Multi-Family Home Requirements —
A dwelling unit meets the requirements of this paragraph
if—
I.R.C. § 45L(c)(3)(A) —
such dwelling unit meets the most recent
Energy Star Multifamily New Construction National Program Requirements
(as in effect on either January 1, 2023, or January 1 of three calendar
years prior to the date the dwelling was acquired, whichever is later),
and
I.R.C. § 45L(c)(3)(B) —
such dwelling unit meets the most recent
Energy Star Multifamily New Construction Regional Program Requirements
applicable to the location of such dwelling unit (as in effect on
either January 1, 2023, or January 1 of three calendar years prior
to the date the dwelling was acquired, whichever is later).
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.
Editor's Note: Sec. 45L(e), below, before amendment by Pub. L 117-169, Sec. 13304(e), is effective
for dwelling units acquired after January 1, 2023.
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.
Editor's Note: Sec. 45L(e), below, after amendment by Pub. L 117-169, Sec. 13304(e), is effective
for dwelling units acquired after December 31, 2022.
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. This subsection shall not
apply for purposes of determining the adjusted basis of any building
under section 42.
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.
Editor's Note: Sec. 45L(g), below, before being redesignated
by Pub. L 117-169, Sec. 13304(d),
is effective for dwelling units acquired before January 1, 2023.
I.R.C. § 45L(g) Termination —
This section shall not apply to any qualified new energy
efficient home acquired after December 31, 2032.
Editor's Note: Sec. 45L(g), below, after being added by Pub. L 117-169, Sec. 13304(d), is effective
for dwelling units acquired after December 31, 2022.
I.R.C. § 45L(g) Prevailing Wage Requirement
I.R.C. § 45L(g)(1) In General —
In the case of a qualifying residence described in subsection (a)(2)(B) meeting the prevailing
wage requirements of paragraph (2)(A),
the credit amount allowed with respect to such residence shall be—
I.R.C. § 45L(g)(1)(A) —
$2,500 in the case of a residence which
meets the requirements of subparagraph (A) of subsection (c)(1) (and which does not meet
the requirements of subparagraph (B) of such subsection), and
I.R.C. § 45L(g)(1)(B) —
$5,000 in the case of a residence which
meets the requirements of subsection (c)(1)(B).
I.R.C. § 45L(g)(2) Prevailing Wage Requirements
I.R.C. § 45L(g)(2)(A) In General —
The requirements described in this subparagraph with
respect to any qualified residence are that the taxpayer shall ensure
that any laborers and mechanics employed by the taxpayer or any contractor
or subcontractor in the construction of such residence shall be paid
wages at rates not less than the prevailing rates for construction,
alteration, or repair of a similar character in the locality in which
such residence is located as most recently determined by the Secretary
of Labor, in accordance with subchapter IV of chapter 31 of title
40, United States Code.
I.R.C. § 45L(g)(2)(B) Correction and Penalty Related To Failure To Satisfy Wage Requirements —
Rules similar to the rules of section 45(b)(7)(B) shall apply.
I.R.C. § 45L(g)(3) Regulations And Guidance —
The Secretary shall issue such regulations or other
guidance as the Secretary determines necessary to carry out the purposes
of this subsection, including regulations or other guidance which
provides for requirements for recordkeeping or information reporting
for purposes of administering the requirements of this subsection.
Editor's Note: Sec. 45L(h), below, after being redesignated
by Pub. L 117-169, Sec. 13304(d),
is effective for dwelling units acquired after December 31, 2022.
I.R.C. § 45L(h) Termination —
This section shall not apply to any qualified new energy
efficient home acquired after December 31, 2032.
(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; Pub. L 117-169,
title I, Sec. 13304, Aug. 16, 2022, 136 Stat. 1818.)
BACKGROUND NOTES
AMENDMENTS
2022 —Subsec. (a)(2). Pub. L 117-169, title I, Sec. 13304(b)
amends subsec. (a)(2). Before amendment, it read as follows:
(2) Applicable Amount.
For purposes of paragraph (1), the applicable
amount is an amount equal to—
(A) in the case of a dwelling unit described in
paragraph (1) or (2) of subsection (c), $2,000, and
(B) in the case of a dwelling unit described in
paragraph (3) of subsection (c), $1,000.
Subsec. (c). Pub. L 117-169,
title I, Sec. 13304(c) amends subsec. (c). Before amendment, it read
as follows:
(c) Energy Saving Requirements
A dwelling unit meets the energy saving requirements
of this subsection if such unit is—
(1) certified—
(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) 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
(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
(B) to have building envelope component improvements
account for at least 1/5 of such 50 percent,
(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
(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—
(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
(B) meets the requirements established by the
Administrator of the Environmental Protection Agency under the Energy
Star Labeled Homes program.
Subsec. (e). Pub. L 117-169,
title I, Sec. 13304(e) amends subsec. (e) by inserting the following
after the first sentence:
“This subsection shall not apply for purposes
of determining the adjusted basis of any building under section 42.”
Subsec. (g). Pub. L 117-169,
title I, Sec. 13304(a) amends subsec. (g) by substituting “December
31, 2032” for “December 31, 2021”.
New subsec. (g). Pub.
L 117-169, title I, Sec. 13304(d) redesignates subsec. (g)
to (h), and adds new subsec. (g) after (f).
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 2022 AMENDMENT
Amendments by Pub. L
117-169, title I, Sec. 13304(b), (c), (d) and (e) shall
apply to dwelling units acquired after December 31, 2022.
Amendments by Pub. L
117-169, title I, Sec. 13304(a) shall apply to dwelling
units acquired after December 31, 2021.
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.
