Instructions For Form 8908 - Energy Efficient Home Credit

2015

Department of the Treasury

Internal Revenue Service

Instructions for Form 8908

Energy Efficient Home Credit

Section references are to the Internal Revenue Code

substantially completed after August 8, 2005, and sold or

unless otherwise noted.

leased to another person after 2005 but before 2017, for

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

General Instructions

certified and meet certain energy saving requirements.

Construction includes substantial reconstruction and

Future Developments

rehabilitation.

Energy Saving Requirements

For the latest information about developments related to

Form 8908 and its instructions, such as legislation

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

enacted after they were published, go to

each new energy efficient home meets the energy saving

form8908.

requirements discussed below.

What’s New

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

The energy efficient home credit was extended to cover

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

qualified new energy efficient homes sold or leased in

heating and cooling energy consumption at least 50%

2015 and 2016.

below the annual level of heating and cooling energy

consumption of a comparable dwelling unit and has

Purpose of Form

building envelope component improvements that account

Eligible contractors use Form 8908 to claim a credit for

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

each qualified energy efficient home sold or leased to

consumption. A manufactured home meeting the

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

requirements described above and the Federal

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

Manufactured Home Construction and Safety Standards

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

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

general business credit.

eligible for the $2,000 credit.

Comparable dwelling unit. A comparable dwelling

Partnerships and S corporations must file this form to

unit:

claim the credit. All other taxpayers are not required to

Is constructed in accordance with the standards of

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

chapter 4 of the 2006 International Energy Conservation

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

Code as such Code (including supplements) was in effect

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

on January 1, 2006;

General Business Credit.

Has air conditioners with a Seasonal Energy Efficiency

See section 45L for more information.

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

Who May Claim the Credit

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

Has heat pumps with a SEER of 13 and a Heating

Eligible contractors may claim the credit for new energy

Seasonal Performance Factor (HSPF) of 7.7, measured in

efficient homes that are acquired by sale or lease by an

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

individual from that contractor during the tax year for use

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

as a residence.

a manufactured home that does not meet the 50% energy

Definitions

saving requirement but is certified to have an annual

level of heating and cooling energy consumption at least

Eligible Contractor

30% below the annual level of heating and cooling energy

An eligible contractor is the person that constructed a

consumption of a comparable dwelling unit (discussed

above) and:

qualified energy efficient home (or produced a qualified

energy efficient home that is a manufactured home). A

Meets FMHCSS requirements, and

person must own and have a basis in the qualified energy

Has building envelope component improvements that

efficient home during its construction to qualify as an

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

eligible contractor with respect to the home. For example,

consumption, or

if the person that hires a third party contractor to construct

Meets the current requirements established by the

the home owns and has the basis in the home during

Administrator of the Environmental Protection Agency

construction, the person that hires the third party

under the Energy Star Labeled Homes program.

contractor is the eligible contractor and the third party

Heating and cooling energy and cost savings must be

contractor is not an eligible contractor.

calculated using the procedures described in Residential

Energy Services Network (RESNET) Publication 13-001,

Qualified New Energy Efficient Home

or an equivalent calculation procedure. You can access

A qualified new energy efficient home is a dwelling unit

located in the United States, whose construction is

Jan 14, 2016

Cat. No. 66390D

Instructions For Form 8908 - Energy Efficient Home Credit - 2015

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