Builders still have an opportunity to lower construction costs through the federal Section 45L Tax Credit. This incentive rewards the construction of energy-efficient homes that meet high-performance standards.
The credit applies to each qualifying unit, providing significant savings for high-volume builders:
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$2,500 per home: For units meeting ENERGY STAR standards.
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$5,000 per home: For units meeting the DOE Zero Energy Ready Home program.
Multifamily projects are also eligible and may receive higher credit amounts if federal prevailing wage requirements are met.
The Deadline: June 30, 2026
To claim the credit, qualifying homes must be sold or leased by June 30, 2026.
How Builders Qualify
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Early Planning: Partner with a certified third-party energy rater to ensure your designs meet ENERGY STAR or DOE standards.
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Documentation: Track insulation, HVAC performance, and air sealing during construction.
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Verification: A certified rater must verify the home’s performance before the sale or lease.
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Close the Deal: Ensure the home is occupied or sold before the June 30, 2026 expiration date.
For builders already using energy-efficient practices, this credit is a tool to offset costs while delivering superior homes.
Learn more: https://www.energystar.gov/about/federal-tax-credits