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
Economics
Jan 23, 2026
Which Local Markets Are Seeing Declines in House Pricing?Nationally, house prices continued to rise at a modest pace in the third quarter of 2025. However, this national trend masks significant variation across local markets. See which markets have experienced housing price declines in recent quarters.
Advocacy
Jan 22, 2026
NAHB Urges Congress to Ease Regulatory Burdens to Help Housing AffordabilityThe best way to ease the nation’s housing affordability crisis is for policymakers to eliminate excessive regulations that are preventing builders from increasing the housing supply, NAHB told Congress today.
Latest Economic News
Economics
Jan 23, 2026
2025 Third Quarter State-Level GDP DataIn the third quarter of 2025, the Bureau of Economic Analysis (BEA) reported that real gross domestic product (GDP) expanded nationally, with growth recorded across all states and the District of Columbia.
Economics
Jan 22, 2026
House Prices Decline in Local Markets Despite National GrowthNationally, house prices continued to rise at a modest pace in the third quarter of 2025, as mentioned in our previous quarterly house prices post. However, this national trend masks significant variation across local markets. While many metro areas continued to see house price appreciation, others experienced notable declines following several years of rapid growth.
Economics
Jan 21, 2026
Private Residential Construction Spending Edges Higher in October on Home ImprovementsPrivate residential construction spending was up 1.3% in October, rebounding from a 1.4% decline in September 2025. This modest gain was primarily driven by increased spending on home improvements.