IRS Releases Updated Guidance on 45L Tax Credit for Energy-Efficient Homes
The Internal Revenue Service has released updated guidance on the new energy-efficient home credit under section 45L of the Internal Revenue Code, as amended by the Inflation Reduction Act of 2022.
The 45L tax credit is allowed to an eligible contractor that constructs a home, including multifamily rentals, that meets the energy savings requirements of the tax credit. The applicable amount of the credit is contingent on which set of energy saving requirements the home meets, and is $500, $1,000, $2,500 or $5,000.
The energy saving requirements of the 45L tax credit incorporate certain ENERGY STAR program requirements and certain zero-energy ready home program requirements.
Latest from NAHBNow
Environmental Issues | Advocacy
Feb 27, 2026
New Army Corps Initiative Will Streamline Permitting ProcessThe Army Corps of Engineers on Feb. 23 announced a new initiative called “Building Infrastructure, Not Paperwork” that the agency said will “shorten permitting timelines, and reduce or eliminate extraneous regulations and paperwork.”
Labor
Feb 27, 2026
Labor Department Proposes New FLSA Independent Contractor RuleThe U.S. Department of Labor (DOL) today published notice of its intent to revise its regulations that distinguish covered employees from exempt independent contractors for enforcement purposes under the Fair Labor Standards Act (FLSA), Family and Medical Leave Act (FMLA) and other laws.
Latest Economic News
Economics
Feb 27, 2026
Gains for Student Housing Construction in the Last Quarter of 2025Private fixed investment for student dormitories was up 1.5% in the last quarter of 2025, reaching a seasonally adjusted annual rate (SAAR) of $3.9 billion. This gain followed three consecutive quarterly declines before rebounding in the final two quarters of the year.
Economics
Feb 27, 2026
Price Growth for Building Materials Slows to Start the YearResidential building material prices rose at a slower rate in January, according to the latest Producer Price Index release from the Bureau of Labor Statistics. This was the first decline in the rate of price growth since April of last year. Metal products continue to experience price increases, while specific wood products are showing declines in prices.
Economics
Feb 26, 2026
Home Improvement Loan Applications Moderate as Borrower Profile Gradually AgesHome improvement activity has remained elevated in the post-pandemic period, but both the volume of loan applications and the age profile of borrowers have shifted in notable ways. Data from the Home Mortgage Disclosure Act (HMDA), analyzed by NAHB, show that total home improvement loan applications have eased from their recent post-pandemic peak, and the distribution of borrowers across age groups has gradually tilted older.