How Section 45L Ended
IRA Revision
The Inflation Reduction Act raised the credit, tied it to ENERGY STAR and DOE Zero Energy Ready Home certification, and extended it through 2032.
OBBBA Signed
The One Big Beautiful Bill Act (P.L. 119-21), signed July 4, 2025, moved the end date forward to June 30, 2026.
Credit Ends
Homes acquired after June 30, 2026 do not qualify. Homes acquired on or before that date can still be claimed.
Source: 26 U.S.C. §45L, as amended by the One Big Beautiful Bill Act (P.L. 119-21).
What Section 45L Was
Section 45L of the Internal Revenue Code gave eligible contractors a tax credit for each qualified energy-efficient new home or dwelling unit they built and sold or leased. The credit was originally enacted in 2005 and substantially revised by the Inflation Reduction Act of 2022, which raised the credit amounts and tied them to ENERGY STAR and DOE Zero Energy Ready Home certification, with separate rates for multifamily buildings.
The IRA had extended the credit through 2032. The One Big Beautiful Bill Act ended it early, for homes acquired after June 30, 2026.
Important: The credit belonged to the eligible contractor, not the home buyer. Homeowners never claimed 45L on their own returns.
Who Can Still Claim It
A contractor with qualified homes acquired on or before June 30, 2026 can still claim the credit for those homes. Before filing:
- 01Confirm the home was sold or leased for use as a residence on or before June 30, 2026. Homes acquired after that date do not qualify.
- 02Confirm the claimant is the eligible contractor: the person who built the home, or the producer of a manufactured home, not the buyer.
- 03Keep the ENERGY STAR or DOE Zero Energy Ready Home certification that applied to the home.
- 04File Form 8908 with the contractor's federal return for the tax year the home was acquired.
- 05Plan to use the credit against your own tax. Section 45L cannot be transferred under §6418.
What You Can Use Instead
The One Big Beautiful Bill Act changed federal tax law only. New York State, NYC and utility programs are still available, and they are what IncentEdge's verified catalog covers.
Recently Verified New York Programs
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 Section 45L?
The eligible contractor, meaning the person who built the home (or the producer of a manufactured home), for a qualified home sold or leased for use as a residence on or before June 30, 2026. The claim is made on Form 8908 with the contractor's return for the tax year the home was acquired, backed by the required energy certification.
Can a Section 45L credit be sold or transferred?
No. Section 45L is not on the list of credits that can be transferred under IRC §6418.
Did the One Big Beautiful Bill Act end New York incentives too?
No. It changed federal tax law only. New York State, NYC and utility programs, such as NYSERDA and Con Edison incentives, are not affected. Those programs are what IncentEdge's verified catalog covers, alongside federal credits.