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
Design | IBS
Jan 09, 2026
From Décor to Resiliency, IBS Design Central Covers It AllAt the 2026 NAHB International Builders’ Show® (IBS) in Orlando Fla., there will be education sessions centered on design. Design Central will offer engaging presentations led by some of the industry’s top professionals, covering everything from décor to sustainability. Here are the Design Central presentations, all taking place at the Orange County Convention Center (OCCC).
IBS
Jan 09, 2026
Final Touches Underway at The New American Home 2026Watching a new home come to life in the final stages of construction is a satisfying experience—not just for the owners, but for the builder as well. That feeling is only amplified when the home is a focal point of the International Builders’ Show (IBS)—the industry’s largest trade show.
Latest Economic News
Economics
Jan 09, 2026
Townhouse Construction Share Gains ContinueAccording to NAHB analysis of the most recent Census data of Starts and Completions by Purpose and Design, during the third quarter of 2025, single-family attached starts totaled 46,000. Over the last four quarters, townhouse construction starts totaled a strong 179,000 homes, which is 1% higher than the prior four-quarter period (177,000). Townhouses made almost 20% all of single-family housing starts for the third quarter of the year.
Economics
Jan 09, 2026
Job Growth Slowed as 2025 EndedJob growth continued to slow at the end of the year, reinforcing signs of a cooling labor market. Nonfarm payrolls increased by 50,000 jobs in December, while the unemployment rate edged down slightly to 4.4%.
Economics
Jan 09, 2026
Residential Construction Softens Amid Ongoing Housing Market HeadwindsThe latest residential housing market report, delayed by the federal government shutdown last fall, indicates that builders have faced significant headwinds in recent months. Elevated mortgage rates earlier in the year have restrained buyer demand and weighed on home building activity, alongside persistently high construction costs.