Instructions For Form 8908 - Energy Efficient Home Credit

2014

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 2015, 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 was extended to cover

requirements discussed below.

qualified new energy efficient homes sold or leased in

2014. The credit is scheduled to expire for qualified new

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

energy efficient homes sold or leased after 2014. Do not

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

claim a credit for these homes on Form 8908 unless the

heating and cooling energy consumption at least 50%

credit is extended.

below the annual level of heating and cooling energy

Purpose of Form

consumption of a comparable dwelling unit and has

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

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

See section 45L for more information.

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

Who May Claim the Credit

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

30% below the annual level of heating and cooling energy

Eligible Contractor

consumption of a comparable dwelling unit (discussed

An eligible contractor is the person that constructed a

above) and:

qualified energy efficient home (or produced a qualified

Meets FMHCSS requirements, and

energy efficient home that is a manufactured home). A

Has building envelope component improvements that

person must own and have a basis in the qualified energy

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

efficient home during its construction to qualify as an

consumption, or

eligible contractor with respect to the home. For example,

Meets the current requirements established by the

if the person that hires a third party contractor to construct

Administrator of the Environmental Protection Agency

the home owns and has the basis in the home during

under the Energy Star Labeled Homes program.

construction, the person that hires the third party

contractor is the eligible contractor and the third party

Heating and cooling energy and cost savings must be

calculated using the procedures described in Residential

contractor is not an eligible contractor.

Jan 21, 2015

Cat. No. 66390D

Instructions For Form 8908 - Energy Efficient Home Credit - 2014

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