Inflation Reduction Act Tracker

Sabin Center for Climate Change Law
Environmental Defense Fund

IRA Section 13304 – New Energy Efficient Home Credit

Section 13304 of the IRA extends and expands the New Energy Efficient Home Credit established in section 45L of the IRC. The credit is available to homeowners that satisfy either energy saving or Zero Energy Home Program requirements set by the Department of Energy. Prior to enactment of the IRA, the credit was due to expire on December 31, 2021. Section 13304 of the IRA amends section 45L of the IRC to extend the credit through December 31, 2032.

The IRA also increases the amount of the credit. As a result of the IRA amendments, newly constructed single family homes will be eligible for a credit of $2,500 to $5,000. The credit for newly constructed multi-family homes ranges from $500 to $1000, but increases to $2,500 to $5,000 if certain wage requirements are met. The Treasury Department must issue rules and guidelines to implement the wage requirements.

 

Eligible Entities:

Property Owner

Current Status:

No change under Trump administration

Section 70508 of the One Big Beautiful Bill Act of 2025 (Public Law 119-21) phases out the availability of the section 45L new energy efficient home credit (IRA section 13304) by June 30, 2026.

Implementation Status at End of Biden Administration:

Complete

Treasury issued guidance and final rules on the prevailing wage requirements to implement the section 45L New Energy Efficient Home tax credit.

Program Stakes:

Congress’ Joint Committee on Taxation estimates taxpayers to claim $1.3 billion in section 45L credits by 2028; the Congressional Budget Office projects $2 billion in section 45L credits by 2031.