Energy Efficient Home Credit

Form 8908

© Attach to your tax return.

Department of the Treasury

Internal Revenue Service

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 or leased to another person for use as

a residence 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 Form 3800, line 1p 

For Paperwork Reduction Act Notice, see page 2. Cat. No. 37718T Form 8908 (2008)

4

1b

2b

3

2a Enter the total number of qualified energy efficient manufactured

homes meeting the 30% standard that were sold or leased to another 

person for use as a residence during the tax year (see instructions) 

General Instructions

Section references are to the Internal

Revenue Code unless otherwise noted.

Comparable dwelling unit. A

Purpose of Form comparable dwelling unit:

Energy Saving Requirements

Eligible contractors use Form 8908 to

claim a credit for each qualified energy

efficient home sold or leased to another

person during the tax year for use as a

residence. The credit ($2,000 or $1,000)

is based on the energy saving

requirements of the home. The credit is

part of the general business credit.

Who May Claim the Credit

Eligible contractors may claim the credit

for new energy efficient homes that are

substantially completed after August 8,

2005, and acquired by sale or lease by

an individual from that contractor during

the tax year for use as a residence.

An eligible contractor is the person that

constructed a qualified energy efficient

home (or produced a qualified energy

efficient home that is a manufactured

home). A person must own and have a

basis in the qualified energy efficient

home during its construction to qualify

as an eligible contractor with respect to

the home. For example, if the person

that hires a third party contractor to

construct the home owns and has the

basis in the home during construction,

the person that hires the third party

contractor is the eligible contractor and

the third party contractor is not an

eligible contractor.

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 or leased to another

person after 2005 but before 2010, for

use as a residence. The home is also

required to be certified and meet certain

energy saving requirements.

Construction includes substantial

reconstruction and rehabilitation.

Definitions

Eligible Contractor

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

meeting the requirements described

above and the Federal Manufactured

Home Construction and Safety

Standards (FMHCSS) requirements (see

24 C.F.R. part 3280) is also eligible for

the $2,000 credit.

● 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

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

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).

OMB No. 1545-1979

Attachment

Sequence No. 153

2008

● The energy efficient home credit was

extended to cover homes substantially

completed during 2009.

● Notices 2008-35 and 2008-36 were

issued to clarify the definition of “eligible

contractor” and provide additional

guidance on the certification process.

However, you can continue to rely on

Notices 2006-27 and 2006-28 for

certifications provided before March 1,

2008.

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:

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 1p of Form 3800.
Form 8908 (2008) 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

Line 1 collect the right amount of tax.

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 or leased

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 or leased 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(f).

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(c)(1)

from an eligible certifier before claiming

the section 45L credit. The certification

will be treated as satisfying the

requirements of section 45L(c)(1) 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 2008-35, or, for manufactured

homes, section 3 or section 4 of Notice

2008-36.

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(f).

Heating and cooling energy and cost

savings must be calculated using the

procedures described in either

Residential Energy Services Network

(RESNET) Publication 05-001, RESNET

Publication 06-001, or an equivalent

calculation procedure. You may access

RESNET publications at

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

taxcredits/procedures.pdf.

● 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.