Builders
Federal Tax Incentives
Federal tax incentives are available for builders of ENERGY STAR® or Department of Energy (DOE) Zero Energy Ready new homes. These incentives can be obtained in addition to PECO New Home Rebates builder incentives. Builders of ENERGY STAR certified or DOE Zero Energy Ready new homes may qualify for federal tax incentives. Click “Learn More” below, to visit the ENERGY STAR landing page for details on how to qualify.
The table below summarizes the federal tax incentive structure.
| Requirement | *Tax Credit |
|---|---|
| ENERGY STAR Certified
Single-Family (SF) New Homes National v3.1 Multifamily (MF) New Construction National v1.1 Multifamily Homes – $500 available for homes certified to eligible ENERGY STAR Multifamily New Construction (MFNC) program requirements, with a larger tax credit ($2,500) available when prevailing wage requirements are met. |
$2,500 SF $500 MF
|
| DOE Zero Energy Ready Certified
Single-Family Multifamily Homes – The 45L tax credit is $1,000 for dwelling units that are part of a building eligible to participate in the EPA’s ENERGY STAR Multifamily New Construction Program, and which are certified to applicable ZERH program requirements, unless the project meets prevailing wage requirements, in which case the 45L tax credit is $5,000 per dwelling unit. |
$5,000 SF $1,000 MF |
*As part of the Inflation Reduction Act (IRA), the Section § 45L New Energy Efficient Home Credit (§ 45L credit) has been updated and extended through 2032. For eligible homes and apartments (referred to as dwelling units in § 45L) acquired on or after January 1, 2023, the tax credit is now specifically tied to certification to an eligible version of the relevant ENERGY STAR program requirements. Note that a larger tax credit is also available for homes that are certified to DOE’s Zero Energy Ready Home (ZERH) Program.
**Starting in 2025, the minimum ENERGY STAR program versions eligible for the § 45L Credit will increase to v3.2 for single-family new homes and remain v1.1 for multifamily new home construction.