IRS Form 8908

A Tax Preparation Guide From AIM Financial

Energy efficiency is an important consideration in residential construction, but qualifying energy-efficient homes may also have federal tax implications for the businesses that build them. IRS Form 8908, Energy Efficient Home Credit, allows eligible contractors to claim a federal tax credit for qualifying new energy-efficient homes acquired by another person for use as a residence.

For home builders, developers, and qualifying residential construction businesses, understanding IRS Form 8908 can help with tax planning, recordkeeping, and accurate business tax preparation.

Important 2026 update: Federal legislation shortened the credit’s availability. Under current IRS guidance, eligible contractors generally cannot claim the Section 45L credit for qualified new homes acquired after June 30, 2026. Because that date has passed, Form 8908 is now particularly relevant to reviewing qualifying acquisitions made on or before the deadline and preparing applicable tax returns. <Cite refs={[“turn692224search0″,”turn692224search7”]}/>

What Is IRS Form 8908?

IRS Form 8908 is used to calculate the federal Energy Efficient Home Credit under Section 45L of the Internal Revenue Code.

The credit is intended for eligible contractors who build or substantially reconstruct qualifying new homes that meet specified energy-efficiency standards. The qualifying home must be acquired by another person for use as a residence during the applicable tax year.

This is a business tax credit, not a general tax credit that every homeowner can claim for replacing windows, installing insulation, or purchasing energy-efficient appliances.

The credit is part of the general business credit system. Partnerships and S corporations generally use Form 8908 to calculate the credit, while other eligible taxpayers may have different reporting requirements depending on whether the credit comes directly from their own qualifying activity or through a pass-through entity.

Who May Qualify for the Energy Efficient Home Credit?

Eligibility depends on the contractor, the home, the energy-efficiency requirements, and the acquisition date.

Potentially eligible businesses include:

• Home builders: Contractors that construct qualifying new single-family homes.
• Manufactured-home producers: Eligible businesses producing qualifying manufactured homes.
• Multifamily residential developers: Contractors involved in qualifying apartment buildings or other multifamily residential construction.
• Certain pass-through businesses: Partnerships and S corporations that qualify to claim the credit and report it to their owners.

Simply constructing a new house does not guarantee eligibility. The home must satisfy the applicable energy-efficiency requirements, and the contractor must meet the relevant eligibility rules.

For qualifying homes, the applicable Energy Star residential construction program or Department of Energy Zero Energy Ready Home requirements may determine whether the home meets the necessary standards. The applicable certification must be obtained before the home is acquired by another person for residential use.

How Much Is the Energy Efficient Home Credit?

The amount depends on the type of home, its energy-efficiency certification, the applicable program requirements, and, for certain multifamily homes, whether prevailing-wage requirements are met.

Under the IRS instructions for the December 2025 revision of Form 8908, the credit amounts for qualifying acquisitions during the applicable period include:

Type of qualifying home	Potential credit per home
Qualifying single-family home that is not Zero Energy Ready Home certified	$2,500
Qualifying single-family home certified as a Zero Energy Ready Home	$5,000
Qualifying multifamily home meeting prevailing-wage requirements, without Zero Energy Ready certification	$2,500
Qualifying multifamily home meeting prevailing-wage requirements and Zero Energy Ready certification	$5,000
Qualifying multifamily home without prevailing-wage compliance or Zero Energy Ready certification	$500
Qualifying multifamily home without prevailing-wage compliance but with Zero Energy Ready certification	$1,000

These amounts are not automatic awards. Each home must meet the relevant requirements, and the applicable acquisition date and tax-year rules must be checked. <Cite refs={[“turn692224search0″,”turn692224search7”]}/>

How Do You Complete IRS Form 8908?

The form collects information about the contractor, the qualifying homes, and the certifications supporting the credit.

Step 1: Confirm the acquisition date. Verify when the home was acquired by another person for use as a residence. For this credit, the June 30, 2026, termination date is a critical consideration.

Step 2: Verify contractor eligibility. Confirm that the business meets the applicable requirements and participated in the relevant energy-efficiency program.

Step 3: Gather certification documents. Obtain the necessary energy-efficiency certifications and supporting records. The certification must satisfy the timing and program requirements.

Step 4: Classify each home. Determine whether the home qualifies under the single-family, manufactured-home, or multifamily requirements, and whether it meets the Zero Energy Ready Home criteria.

Step 5: Calculate the credit. Apply the appropriate credit amount to each qualifying home and complete the relevant sections of Form 8908.

Step 6: Review wage requirements and related credits. If claiming an increased credit for qualifying multifamily homes, check the prevailing-wage rules and whether Form 7220 must be attached. Also review restrictions against using the same expenses for multiple tax incentives.

Step 7: Report the credit correctly. Partnerships and S corporations generally file Form 8908. Owners receiving qualifying credits through Schedule K-1 should follow the instructions for reporting those amounts on their own returns.

Common Form 8908 Mistakes to Avoid

One mistake is assuming that a homeowner can claim Form 8908 for ordinary energy-saving improvements. The form is intended for eligible contractors and qualifying new homes.

Another mistake is overlooking the acquisition deadline. Construction completion, certification, and acquisition are different events, and the applicable rules focus on when the home is acquired for residential use.

Contractors should also avoid claiming a credit without the required certification, using the wrong amount for the home’s category, or overlooking prevailing-wage documentation where required.

Keeping records by property—including acquisition dates, addresses, certification details, and construction documentation—can make the tax preparation process more reliable.

How AIM Financial Can Help With Business Tax Preparation

Residential builders and developers often manage substantial expenses, subcontractor payments, payroll records, and multiple tax reporting obligations. When specialized tax credits are involved, organized records and careful review become especially important.

AIM Financial assists taxpayers and businesses with tax preparation and understanding applicable tax reporting requirements. If your business operates in Grand Rapids, Kentwood, Wyoming, or elsewhere in West Michigan and you need assistance organizing business tax records or reviewing which tax forms may apply, contact AIM Financial.

For questions involving specialized construction certifications or prevailing-wage compliance, a qualified energy-efficiency certifier or professional familiar with construction tax credits may also be needed.

Contact AIM Financial for business tax preparation assistance. Reviewing your records carefully can help you identify relevant tax issues and prepare your business return more confidently.

Final Thoughts

IRS Form 8908 is used to claim the Energy Efficient Home Credit for qualifying new homes built by eligible contractors. The credit amount depends on the home type, energy-efficiency standards, applicable certifications, and other requirements.

Because the federal credit generally does not apply to homes acquired after June 30, 2026, contractors should carefully review acquisition dates and current IRS guidance before claiming it. AIM Financial encourages business owners to seek appropriate tax preparation assistance when dealing with specialized credits and complex business tax forms.