OMB No. 1545-1979 Energy Efficient Home Credit

Form 8908

© Attach to your tax return.

Department of the Treasury

Internal Revenue Service

Attachment

Sequence No. 153

Name(s) as shown on return Identifying number

1a Enter the total number of qualified energy efficient homes meeting the 

50% standard that were sold during the tax year (see instructions)

3

4 Add lines 1b, 2b, and 3. Partnerships and S corporations, report this amount on Schedule K; all 

others, report this amount on the applicable line of Form 3800 (e.g., line 1t of the 2006

Form 3800) 

For Paperwork Reduction Act Notice, see page 2. Cat. No. 37718T Form 8908 (Rev. 12-2006)

4

1b

2b

3

2a Enter the total number of qualified energy efficient manufactured

homes meeting the 30% standard that were sold during the tax year 

(see instructions) 

General Instructions

Section references are to the Internal

Revenue Code unless otherwise noted.

Comparable dwelling unit. A

comparable dwelling unit:

Purpose of Form

The energy efficient home credit is

part of the general business credit. No

portion of the unused credit may be

carried back to any tax year ending

before 2006. If you cannot use all of the

credit this year because of the tax

liability limit, you may carry the unused

credit forward up to 20 years. See

Carryback and Carryforward of Unused

Credit in the instructions for Form 3800,

General Business Credit.

30% energy efficient standard. The

credit is $1,000 for a manufactured

home that does not meet the 50%

energy saving requirement but is

certified to have an annual level of

heating and cooling energy consumption

at least 30% below the annual level of

heating and cooling energy consumption

of a comparable dwelling unit (discussed

above) and:

Energy Saving Requirements

Eligible contractors use Form 8908 to

claim a credit for each qualified energy

efficient home sold during the tax year.

The credit ($2,000 or $1,000) is based

on the energy saving requirements of the

home.

Who May Claim the Credit

Eligible contractors may claim the credit

for new energy efficient homes that are

substantially completed after August 8,

An eligible contractor is:

● The person who constructed the

qualified new energy efficient home or

A qualified new energy efficient home is

a dwelling unit located in the United

States, whose construction is

substantially completed after August 8,

2005, and sold after 2005 but before

2009. The home is also required to be

certified and meet certain energy saving

requirements. Construction includes

substantial reconstruction and

rehabilitation.

Definitions

Eligible Contractor

● For manufactured homes, the person

who manufactured the home.

Qualified New Energy

Efficient Home

The amount of the credit is based on the

extent to which each new energy

efficient home meets the energy saving

requirements discussed below.

50% energy efficient standard. The

credit is $2,000 for a dwelling unit that is

certified to have an annual level of

heating and cooling energy consumption

at least 50% below the annual level of

heating and cooling energy consumption

of a comparable dwelling unit and has

building envelope component

improvements that account for at least

1/5 of the 50% reduction in energy

consumption. A manufactured home

● Is constructed in accordance with the

standards of chapter 4 of the 2004

Supplement to the 2003 International

Energy Conservation Code,

● Has air conditioners with a Seasonal

Energy Efficiency Ratio (SEER) of 13,

measured in accordance with 10 C.F.R.

430.23(m), and

● Meets FMHCSS requirements, and

● Has building envelope component

improvements that account for at least

1/3 of the 30% reduction in energy

consumption, or

● Meets the current requirements

established by the Administrator of the

Environmental Protection Agency under

the Energy Star Labeled Homes

program.

(Rev. December 2006)

1a

b Multiply line 1a by $2,000 

b Multiply line 2a by $1,000 

2a

Energy efficient home credit from partnerships and S corporations 

What’s New

● Taxpayers other than partnerships or

S corporations, whose only source of

this credit is from a pass-through entity,

are not required to complete or file this

form. Instead, they can report this credit

directly on line 1t of Form 3800.

● The IRS will revise this December

2006 version of the form only when

necessary. Continue to use this version

until a new revision is issued.

2005, and acquired by an individual from

that contractor during the tax year for

use as a residence.

meeting the requirements described

above and the Federal Manufactured

Home Construction and Safety

Standards (FMHCSS) requirements (see

24 C.F.R. section 3280) is also eligible

for the $2,000 credit.

See section 45L for more information.

● Has heat pumps with a SEER of 13

and a Heating Seasonal Performance

Factor (HSPF) of 7.7, measured in

accordance with 10 C.F.R. 430.23(m).
Form 8908 (Rev. 12-2006) Page 2

Paperwork Reduction Act Notice. We

ask for the information on this form to

carry out the Internal Revenue laws of

the United States. You are required to

give us the information. We need it to

ensure that you are complying with

these laws and to allow us to figure and

collect the right amount of tax.

Line 1

The time needed to complete and file

this form will vary depending on

individual circumstances. The estimated

burden for individual taxpayers filing this

form is approved under OMB control

number 1545-0074 and is included in

the estimates shown in the instructions

for their individual income tax return. The

estimated burden for all other taxpayers

who file this form is shown below.

Recordkeeping 2 hr., 9 min.

Learning about the

law or the form 12 min.

Preparing and sending

the form to the IRS 14 min.

If you have comments concerning the

accuracy of these time estimates or

suggestions for making this form

simpler, we would be happy to hear

from you. See the instructions for the tax

return with which this form is filed.

Note. If you only have a credit allocated

to you from a partnership or

S corporation, skip lines 1 and 2, and go

to line 3.

Specific Instructions

For each home substantially completed

after August 8, 2005, and sold during

the tax year, that meets the 50% energy

efficient standard, the allowable credit is

$2,000.

Line 3

Enter the amount of credit allocated to

you as a shareholder or partner.

Line 2

For each manufactured home

substantially completed after August 8,

2005, and sold during the tax year, that

meets the 30% energy efficient

standard, the allowable credit is $1,000.

Reduce the expenses incurred in the

construction of each new home by the

amount of the credit. Expenses taken

into account for either the rehabilitation

or energy components of the investment

tax credit may not again be considered

in determining the energy efficient home

credit. See section 45L(e).

You are not required to provide the

information requested on a form that is

subject to the Paperwork Reduction Act

unless the form displays a valid OMB

control number. Books or records

relating to a form or its instructions must

be retained as long as their contents

may become material in the

administration of any Internal Revenue

law. Generally, tax returns and return

information are confidential, as required

by section 6103.

Certification

An eligible contractor must obtain a

certification that the dwelling unit meets

the requirements of section 45L from an

eligible certifier before claiming the

section 45L credit. The certification will

be treated as satisfying the requirements

of section 45L if all the construction has

been performed in a manner consistent

with the design specifications provided

to the eligible certifier and the

certification contains all of the

information required by Section 3 of

Notice 2006-27, or, for manufactured

homes, Section 3 or section 4 of Notice

2006-28.

Reduce the expenses incurred in the

construction of each new home by the

amount of the credit. Expenses taken

into account for either the

rehabilitationor energy components of

the investment tax credit may not again

be considered in determining the energy

efficient home credit. See section 45L(e).

Heating and cooling energy and cost

savings must be calculated using the

procedures described in either

Residential Energy Services Network

(RESNET) Publication 05-001 or RESNET

Publication 06-001. You may access

RESNET publications at

http://www.resnet.us/standards/

taxcredits/procedures.pdf.