If you’re a home builder, renovator, or producer of manufactured homes, the clock is officially ticking. One of the most valuable federal incentives available to the residential construction industry—the Energy Efficient Home Builder Credit—is set to phase out soon. And with tax credits being far more powerful than deductions, this is a benefit you don’t want to miss.

Here’s what every builder needs to know before the window closes.

Why This Credit Matters Right Now

The Energy Efficient Home Builder Credit offers up to $5,000 per qualifying home, depending on the home’s certification and energy efficiency levels. For builders completing multiple projects, that can translate into tens—or even hundreds—of thousands of dollars in tax savings.

But there’s urgency:

Homes must be acquired (purchased or leased) by June 30, 2026 to qualify.

That leaves roughly seven months to take action. After that deadline, the credit disappears.

Who Qualifies for the Credit?

To be eligible, your business must meet three core requirements:

1. You must construct or substantially reconstruct a qualified energy-efficient home.

2. You must own the home and have tax basis in it during construction.

3. The home must be acquired by an individual (buyer or renter) for use as a residence by June 30, 2026.

Even manufactured homes qualify, whether acquired directly from the producer or through a dealer.

However, builders who retain the home for personal residential use cannot claim the credit.

What Counts as an Energy Efficient Home?

A qualifying home must:

• Be a single-family, multifamily, or manufactured home located in the United States.

• Be purchased or leased by an individual for use as a primary residence.

• Meet specific Energy Star or Zero Energy Ready Home (ZERH) standards.

How Much Is the Credit Worth?

Credit amounts range from $500 to $5,000, depending on the energy program and wage requirements the home meets. Here’s the breakdown:

Single-Family & Manufactured Homes

• $2,500 — Meets Energy Star Program requirements

• $5,000 — Certified Zero Energy Ready Home (ZERH)

Multifamily Units

• $500 per unit — Meets Energy Star Program requirements

• $2,500 per unit — Meets Energy Star + Prevailing Wage Requirements

• $1,000 per unit — ZERH certified

• $5,000 per unit — ZERH certified + Prevailing Wage Requirements

These amounts can scale quickly for multifamily builders.

Certification Requirements

To claim the credit, you must obtain official program certifications:

• Energy Star certification.

• ZERH certification.

You don’t need to file these certifications with your tax return, but you must retain them for audit purposes. Additionally, keep records to prove:

• The home’s address

• Your eligibility as a builder/producer

• Acquisition by an individual during the tax year

• The buyer/tenant’s name

• Prevailing wage compliance (if applicable)

How to Claim the Credit

Builders & Producers

File IRS Form 8908 and attach it to your federal tax return.

Partnerships, LLCs, and S Corporations

The entity files Form 8908, then passes the credit through to owners via Schedule K-1.
Owners then claim the credit using IRS Form 3800.

Important Note

Your tax basis in the home must be reduced by the amount of the credit claimed.

The Bottom Line for Builders

This is one of the most lucrative credits available to the construction industry—and it’s set to end soon. With up to $5,000 per qualifying home or unit, acting before June 30, 2026 is critical.

Key Takeaways

• High-value credit: Up to $5,000 per home or unit.

• Firm deadline: Homes must be acquired by June 30, 2026.

• Builder advantage: Applies to single-family, multifamily, and manufactured homes.

• Certification required: Energy Star or ZERH standards.

• Basis reduction applies: Credit reduces your tax basis in the property.

If you're a builder or manufacturer, now is the time to accelerate projects, finalize acquisitions, and gather required certifications. Missing the deadline means missing the credit—permanently.