What Happened to the Section 45L Energy Efficient Home Credit
The One Big Beautiful Bill Act (P.L. 119-21), signed July 4, 2025, ended Section 45L for homes acquired after June 30, 2026. This page used to be a guide to claiming the credit. It now covers what the credit was, what changed, who can still claim it, and what is available instead.
Status as of September 10, 2026: terminated for homes acquired after June 30, 2026. Source: IRS Fact Sheet FS-2025-05.
What Section 45L Was
Section 45L of the Internal Revenue Code gave a tax credit to contractors who built energy-efficient homes: single-family homes, multifamily buildings, condominiums, and manufactured homes. Originally enacted in 2005, it was revamped by the Inflation Reduction Act starting January 1, 2023, which tied the credit to the ENERGY STAR and DOE Zero Energy Ready Home programs.
The credit was a fixed amount per dwelling unit, set by which standard the unit met, with higher multifamily amounts where prevailing wage requirements were met. The builder or developer claimed it, not the homebuyer or tenant.
What the One Big Beautiful Bill Act Changed
The One Big Beautiful Bill Act added a termination date. In the IRS's words, “The credit will not be allowed for any qualified new energy efficient home acquired after June 30, 2026.” The date that matters is when the home is acquired, not when construction started. Earlier versions of this page said the credit ran through 2032. That is no longer true.
Section 45L credits were never transferable under Section 6418, so there is no transfer market for remaining claims either.
Who Can Still Claim It
A builder or developer can still claim Section 45L for a qualifying home acquired on or before June 30, 2026, provided that:
- The claimant is the eligible contractor, the person who constructed the home, not the buyer or tenant
- A qualified certifier certified the home as meeting the applicable ENERGY STAR or DOE Zero Energy Ready Home standard
- The credit is claimed for the tax year the home was acquired, on Form 8908 (Energy Efficient Home Credit), flowing through Form 3800 (General Business Credit)
Homes acquired after June 30, 2026 do not qualify, however early their construction began. Confirm eligibility and acquisition dates with a tax advisor before filing.
What Is Available Instead
The One Big Beautiful Bill Act changed federal tax law only. New York state, New York City and utility programs are not affected by it. IncentEdge's verified catalog currently covers New York: state agency programs, New York City programs, and utility programs, plus federal credits that apply nationwide.
At the federal level, the Section 48E investment tax credit for solar and storage remains: 30% of eligible cost for a system under 1 MW AC or one with prevailing wage and apprenticeship compliance, 6% for a larger system without it. Wind and solar projects must have begun construction by July 4, 2026, or be placed in service by December 31, 2027. Energy storage keeps a longer phase-down schedule.
See the programs on the New York incentives page, or browse all incentives.
Frequently Asked Questions
Is the Section 45L credit still available?
Only for homes acquired on or before June 30, 2026. The One Big Beautiful Bill Act (P.L. 119-21), signed July 4, 2025, terminated Section 45L for any qualified new energy efficient home acquired after that date.
Who can still claim the Section 45L credit?
The eligible contractor, meaning the builder or developer who constructed the home, can still claim the credit for a qualifying home acquired on or before June 30, 2026. The credit is claimed for the tax year the home was acquired, reported on Form 8908, and flows through Form 3800 (General Business Credit). The homebuyer or tenant cannot claim it.
What certification does a home need for a remaining 45L claim?
Each home must be certified by a qualified certifier as meeting the applicable ENERGY STAR or DOE Zero Energy Ready Home standard. A builder claiming a home acquired on or before June 30, 2026 should keep that certificate with the tax records that support the claim.
Can Section 45L credits be transferred?
No. Section 45L was never on the list of credits that can be sold to another taxpayer under Section 6418, before or after the One Big Beautiful Bill Act.
What is available instead of Section 45L?
The One Big Beautiful Bill Act changed federal tax law only. New York state, New York City and utility programs are not affected by it, and IncentEdge's verified catalog covers them. At the federal level, the Section 48E investment tax credit for solar and storage remains, but wind and solar projects must have begun construction by July 4, 2026, or be placed in service by December 31, 2027.
See what is available in New York
New York state, New York City and utility programs were not affected by the One Big Beautiful Bill Act. IncentEdge's verified catalog covers them, plus federal credits.