Affordable Housing Incentives for DOE Efficient New Homes
Between 2023 and 2026, the U.S. Department of Energy’s Efficient New Homes certification opens the door to a wide range of financial incentives and funding programs for builders and developers. Homes that meet DOE’s high-performance standards can qualify for a $5,000 federal tax credit under Section 45L, as well as access preferential financing through Fannie Mae’s Green Financing program. Builders of Deltec Homes receive an additional $750 rebate, and DOE-certified projects satisfy energy efficiency requirements for key HUD programs, including the HOME Investment Partnerships and Housing Trust Fund, both of which support affordable housing development. The certification also meets HUD and USDA minimum energy standards, expanding eligibility for federally funded housing initiatives. Furthermore, DOE certification can unlock low-carbon financing opportunities through PACE Equity’s CIRRUS Gap Financing Loans, offering below-market rates for sustainable projects.
At the state and local level, many Low-Income Housing Tax Credit (LIHTC) programs now reward projects that achieve DOE Efficient New Homes certification with competitive scoring advantages. States such as Arizona, Colorado, Illinois, Maryland, Pennsylvania and Wisconsin award multiple points for DOE-certified projects in their Qualified Allocation Plans, giving developers a leg up in securing affordable housing tax credits. Additionally, several states recognize DOE certification as a qualifying green standard, while others—like Connecticut and Michigan—require it for higher-tier certifications such as Enterprise Green Communities Plus. Together, these federal and state incentives are positioning DOE Efficient New Homes as a central standard in the future of energy-efficient, affordable housing, aligning cost savings, environmental performance and housing equity goals nationwide.
