Instructions For Form 8908 - Energy Efficient Home Credit

2016

Department of the Treasury

Internal Revenue Service

Instructions for Form 8908

Energy Efficient Home Credit

Section references are to the Internal Revenue Code

Qualified New Energy Efficient Home

unless otherwise noted.

A qualified new energy efficient home is a dwelling unit

located in the United States, whose construction is

General Instructions

substantially completed after August 8, 2005, and sold or

leased to another person after 2005 but before 2017, for

Future Developments

use as a residence. The home is also required to be

certified and meet certain energy saving requirements.

For the latest information about developments related to

Construction includes substantial reconstruction and

Form 8908 and its instructions, such as legislation

rehabilitation.

enacted after they were published, go to

form8908.

Energy Saving Requirements

What’s New

The amount of the credit is based on the extent to which

each new energy efficient home meets the energy saving

The energy efficient home credit is scheduled to expire for

requirements discussed below.

qualified new energy efficient homes sold or leased after

2016. Do not claim a credit for these homes on Form 8908

50% energy efficient standard. The credit is $2,000 for

unless the credit is extended.

a dwelling unit that is certified to have an annual level of

Purpose of Form

heating and cooling energy consumption at least 50%

below the annual level of heating and cooling energy

Eligible contractors use Form 8908 to claim a credit for

consumption of a comparable dwelling unit and has

each qualified energy efficient home sold or leased to

building envelope component improvements that account

another person during the tax year for use as a residence.

for at least 1/5 of the 50% reduction in energy

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

consumption. A manufactured home meeting the

saving requirements of the home. The credit is part of the

requirements described above and the Federal

general business credit.

Manufactured Home Construction and Safety Standards

(FMHCSS) requirements (see 24 C.F.R. part 3280) is also

Partnerships and S corporations must file this form to

eligible for the $2,000 credit.

claim the credit. All other taxpayers aren't required to

Comparable dwelling unit. A comparable dwelling

complete or file this form if their only source for this credit

unit:

is a partnership or S corporation. Instead, they can report

Is constructed in accordance with the standards of

this credit directly on line 1p in Part III of Form 3800,

chapter 4 of the 2006 International Energy Conservation

General Business Credit.

Code as such Code (including supplements) was in effect

See section 45L for more information.

on January 1, 2006;

Who May Claim the Credit

Has air conditioners with a Seasonal Energy Efficiency

Ratio (SEER) of 13, measured in accordance with 10

Eligible contractors may claim the credit for new energy

C.F.R. 430.23(m); and

efficient homes that are acquired by sale or lease by an

Has heat pumps with a SEER of 13 and a Heating

individual from that contractor during the tax year for use

Seasonal Performance Factor (HSPF) of 7.7, measured in

as a residence.

accordance with 10 C.F.R. 430.23(m).

Definitions

30% energy efficient standard. The credit is $1,000 for

a manufactured home that doesn't meet the 50% energy

Eligible Contractor

saving requirement but is certified to have an annual

level of heating and cooling energy consumption at least

An eligible contractor is the person that constructed a

30% below the annual level of heating and cooling energy

qualified energy efficient home (or produced a qualified

consumption of a comparable dwelling unit (discussed

energy efficient home that is a manufactured home). A

above) and:

person must own and have a basis in the qualified energy

Meets FMHCSS requirements, and

efficient home during its construction to qualify as an

Has building envelope component improvements that

eligible contractor with respect to the home. For example,

account for at least 1/3 of the 30% reduction in energy

if the person that hires a third party contractor to construct

consumption, or

the home owns and has the basis in the home during

Meets the current requirements established by the

construction, the person that hires the third party

Administrator of the Environmental Protection Agency

contractor is the eligible contractor and the third party

under the Energy Star Labeled Homes program.

contractor isn't an eligible contractor.

Heating and cooling energy and cost savings must be

calculated using the procedures described in Residential

Nov 28, 2016

Cat. No. 66390D

Instructions For Form 8908 - Energy Efficient Home Credit - 2016

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