How contractors file Form 8908 for 2025 projects
The 45L energy-efficient home credit is a federal tax incentive that rewards builders, developers and contractors who construct or substantially renovate residential properties that meet high energy performance standards. Eligible projects include new single-family homes, multifamily developments, manufactured housing and major remodels. The credit amount ranges from $2,500 to $5,000 per qualifying unit, depending on whether the project meets ENERGY STAR or Zero Energy Ready Home (ZERH) certification requirements. Contractors must also follow prevailing wage standards for an additional bonus and complete the necessary certification steps with third-party raters to confirm compliance.
To claim the 45L credit, contractors need thorough documentation, including energy certification reports, closing or lease records, project cost breakdowns and unit-by-unit details. Filing requires completion of Form 8908 and integration with the general business credit calculation on Form 3800. Because credits can interact with other federal programs, careful planning ensures builders maximize benefits without overlap. Records must be retained for at least three years to support potential audits. Overall, the program helps contractors reduce tax liability while promoting the construction of energy-efficient homes that provide long-term environmental and cost savings.
