O

Energy Efficient Home Credit

Form 8908

 Attach to your tax return.

Department of the Treasury

Internal Revenue Service

Name(s) as shown on return Identifyi

Caution: This form may only be filed for fiscal years ending in 2006.

1a Enter the total number of qualified energy efficient homes meeting the 50% standard that were

substantially completed after August 8, 2005, and sold after December 31, 2005 (see

instructions) 1a b Multiply line 1a by $2,000

Form 8908 credits

from pass-through

entities:

3

4 Current year credit. Add lines 1b, 2b, and 3. Enter the total here and on line 1t of Form 3800.

For Paperwork Reduction Act Notice, see page 2. Cat. No. 37718T 

4

1b

2b

3

2a Enter the total number of qualified energy efficient manufactured homes meeting the 30%

standard that were substantially completed after August 8, 2005, and sold after December 31,

2005 (see instructions) 2a b Multiply line 2a by $1,000

Exception: S corporations and partnerships, see instructions.

If you are a— Then enter the Form 8908 credits from—

Schedule K-1 (Form 1120S) box 13, code U

Schedule K-1 (Form 1065) box 15, code U

a Shareholder

b Partner 

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 for 2005 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. See section

45L for more information.

30% energy efficient 

credit is $1,000 for a m

home that does not me

energy saving requirem

certified to have an an

heating and cooling en

at least 30% below the 

heating and cooling en

of a comparable dwelli

above) and:

Energy Saving Requirements

Eligible contractors use Form 8908 to

claim a credit for each qualified energy

efficient home sold in 2006. 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,

2005, and acquired by an individual from

that contractor after December 31, 2005,

for use as a residence.

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, which is certified and meets

certain energy saving requirements,

discussed next. Construction includes

substantial reconstruction and

rehabilitation.

Definitions

Eligible Contractor

● In the case of a qualified new energy

efficient home that is a manufactured

home, the manufactured home producer

of the property.

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 CFR section 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 and

● Has heating and coo

efficiencies meeting the 

allowed under the guid

by Congress under the 

Appliance Energy Cons

1987 in effect at the tim

unit is completed. See 

Energy guidelines at 10 

● Meets FMHCSS requ

● Has building envelop

improvements that acc

1/3 of the 30% reducti

consumption, or

● Meets the current re

established by the Adm

Environmental Protectio

the Energy Star Labele

program.

Certification

The certification must b

accordance with guida

the IRS, in consultation 

Department of Energy. 

prescribe the energy ef

envelope components, 

heating or cooling equi

and their respective rat

efficacy performance. T

also specify procedure

calculating energy and 

IRS expects to issue th

early 2006.
Form 8908 (2005) 

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 c

this form will vary depe

individual circumstance

burden for individual ta

form is approved unde

number 1545-0074 and 

the estimates shown in 

for their individual inco

estimated burden for a

who file this form is sh

Recordkeeping 

Learning about the

law or the form 

Preparing and sending

the form to the IRS 

If you have comment

accuracy of these time 

suggestions for making 

simpler, we would be h

from you. See the instr

return with which this f

Note. If you only have a credit allocated

to you from a pass-through entity, 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 after December 31, 2005,

that meets the 50% energy efficient

standard, the allowable credit is $2,000.

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).

Line 3

Enter the amount of credit that was

allocated to you as a shareholder or

partner.

Line 4

Report the current year credit on line 1t

of Form 3800 to determine your

allowable credit for the current year.

Attach both Forms 3800 and 8908 to

your tax return.

S corporations and partnerships. For

other partnerships and S corporations,

report each shareholder’s or partner’s

share of the credit on Schedule K-1.

Electing large partnerships include this

amount in “general credits.” Line 2

For each home substantially completed

after August 8, 2005, and sold during

the tax year after December 31, 2005,

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

subject to the Paperwo

unless the form display

control number. Books 

relating to a form or its 

be retained as long as 

may become material i

administration of any In

law. Generally, tax retu

information are confide

by section 6103.

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