This notice sets forth a process under which an eligible contractor
who constructs a dwelling unit (other than a manufactured home) may obtain
a certification that the dwelling unit is an energy efficient home that satisfies
the requirements of § 45L(c)(1)(A) and (B) of the Internal Revenue
Code. This notice also provides for a public list of software programs that
may be used in calculating energy consumption for purposes of obtaining a
certification that satisfies the requirements of § 45L(d). Guidance
relating to manufactured homes will be provided in a separate notice.
.01 In General. Section 45L provides a credit
to an eligible contractor who constructs a qualified new energy efficient
home. For qualified new energy efficient homes (other than manufactured homes),
the amount of the credit is $2,000. A dwelling unit qualifies for the credit
(1) It is located in the United States;
(2) Its construction is substantially completed after August 8, 2005;
(3) It meets the energy saving requirements of § 45L(c)(1);
(4) It is acquired from the eligible contractor after December 31,
2005, and before January 1, 2008, for use as a residence.
.02 Energy Saving Requirements. To meet the energy
saving requirements of § 45L(c)(1), a dwelling unit must be certified
to provide a level of heating and cooling energy consumption that is at least
50 percent below that of a comparable dwelling unit constructed in accordance
with the standards of section 404 of the 2004 Supplement to the 2003 International
Energy Conservation Code (2004 IECC Supplement), and to have building envelope
component improvements that provide for a level of heating and cooling energy
consumption that is at least 10 percent below that of a comparable dwelling
unit. For this purpose, heating and cooling energy and cost savings must
be calculated in accordance with the procedures prescribed in Residential
Energy Services Network (RESNET) Publication No. 05-001 (Nov. 17, 2005).
A contractor must obtain the certification required under § 45L(c)(1)
with respect to a dwelling unit (other than a manufactured home) from an eligible
certifier before claiming the energy efficient home credit with respect to
the dwelling unit. A contractor is not required to file the certification
with the return on which the credit is claimed. However, § 1.6001-1(a)
of the Income Tax Regulations requires that taxpayers maintain such books
and records as are sufficient to establish the entitlement to, and amount
of, any credit claimed by the taxpayer. Accordingly, an eligible contractor
claiming a $2,000 credit under § 45L should retain the certification
as part of the eligible contractor’s records to satisfy this requirement.
The certification will be treated as satisfying the requirements of § 45L(c)(1)
if all construction has been performed in a manner consistent with the design
specifications provided to the eligible certifier and the certification contains
all of the following:
.01 The name, address, and telephone number of the eligible certifier.
.02 The address of the dwelling unit.
.03 A statement by the eligible certifier that—
(1) The dwelling unit has a projected level of annual heating and cooling
energy consumption that is at least 50 percent below the annual level of heating
and cooling energy consumption of a reference dwelling unit in the same climate
(2) Building envelope component improvements alone account for a level
of annual heating and cooling energy consumption that is at least 10 percent
below the annual level of heating and cooling energy consumption of a reference
dwelling unit in the same climate zone; and
(3) Heating and cooling energy and cost savings have been calculated
in the manner prescribed in section 2.02 of this notice.
.04 A statement by the eligible certifier that field inspections of
the dwelling unit (or of other dwelling units under the sampling protocol
described below) performed by the eligible certifier during and after the
completion of construction have confirmed that all features of the home affecting
such heating and cooling energy consumption comply with the design specifications
provided to the eligible certifier. With respect to builders who build at
least 85 homes a year or build subdivisions with the same floor plan using
the same subcontractors, the eligible certifier may use the sampling protocol
found in the current ENERGY STAR® for Homes
Sampling Protocol Guidelines instead of inspecting all of the homes. The
sampling protocols can be found at the following web address:
.05 A list identifying—
(1) The dwelling unit’s energy efficient building envelope components
and their respective energy performance rating as required by section 401.3
of the 2004 IECC Supplement; and
(2) The energy efficient heating and cooling equipment installed in
the dwelling unit and the energy efficiency performance of such equipment
as rated under applicable Department of Energy Appliance Standards test procedures.
.06 Identification of the listed software program used to calculate
energy consumption (see section 5 of this notice).
.07 A declaration, applicable to the certification and any accompanying
documents, signed by a person currently authorized to bind the eligible certifier
in these matters, in the following form:
“Under penalties of perjury, I declare that I have examined this
certification, including accompanying documents, and to the best of my knowledge
and belief, the facts presented in support of this certification are true,
correct, and complete.”
The following definitions apply for purposes of this notice:
(1) Building envelope components are basement walls, exterior walls,
floor, roof, and any other building element that encloses conditioned space,
including any boundary between conditioned space and unconditioned space.
(2) A climate zone is a geographical area within which all locations
have similar long-term climate conditions as defined in Chapter 3 of the 2004
(3) A dwelling unit is a single unit providing complete independent
living facilities for one or more persons, including permanent provisions
for living, sleeping, eating, cooking, and sanitation, within a building that
is not more than three stories above grade in height.
(4) An eligible certifier is a person that is not related (within the
meaning of § 45(e)(4)) to the eligible contractor and has been accredited
or otherwise authorized by RESNET (or an equivalent rating network) to use
energy performance measurement methods approved by RESNET (or the equivalent
rating network). An employee or other representative of a utility or local
building regulatory authority may qualify as an eligible certifier if the
employee or representative has been accredited or otherwise authorized by
RESNET (or an equivalent rating network) to use the approved energy performance
(5) An eligible contractor is the person that constructed a qualified
new energy efficient home.
(6) A manufactured home is a dwelling unit constructed in accordance
with the Federal Manufactured Home Construction and Safety Standards (24 C.F.R
(7) A reference dwelling unit is a dwelling unit that is comparable
to the dwelling unit constructed by the eligible contractor except that—
(a) The comparable dwelling unit is constructed in accordance with
the minimum standards of Chapter 4 of the 2004 IECC Supplement;
(b) The comparable dwelling unit’s air conditioners have a Seasonal
Energy Efficiency Ratio (SEER) of 13, measured in accordance with 10 C.F.R.
(c) The comparable dwelling unit’s heat pumps have a SEER of 13
and a Heating Seasonal Performance Factor (HSPF) of 7.7, measured in accordance
with 10 C.F.R. 430.23(m).
SECTION 5. SOFTWARE PROGRAMS
.01 In General. The Internal Revenue Service
will create and maintain a public list of software programs that may be used
to calculate energy consumption for purposes of providing a certification
under section 3 of this notice. A software program will be included on the
original list if the software developer submits the following information
to the Service and RESNET:
(1) The name, address, and telephone number of the software developer;
(2) The name or other identifier of the program as it will appear on
(3) The test results, test runs, and the software program with which
the test was conducted; and
(4) A declaration by the developer of the software program, made under
penalties of perjury, that the software program has satisfied all tests required
to conform to the software accreditation process prescribed in RESNET Publication
No. 05-001 (Nov. 17, 2005).
.02 Addresses. Submissions under this section
must be addressed as follows:
Submissions to the Service submitted by U.S. mail:
Internal Revenue Service
Attn: Program Administrator
P.O. Box 7604
Ben Franklin Station
Submissions to the Service submitted by a private delivery service:
Internal Revenue Service
Attn: Program Administrator
1111 Constitution Ave., N.W.
Submissions to RESNET:
Residential Energy Services Network
P.O. Box 4561
.03 Original and Updated Lists. A software program
will be included on the original list if the software developer’s submission
is received before March 1, 2006. The list will be updated as necessary to
reflect submissions received after February 28, 2006.
.04 Removal from Published List. The Service
may, upon examination (and after appropriate consultation with the Department
of Energy), determine that a software program is not sufficiently accurate
to justify its use in calculating energy consumption for purposes of providing
a certification under section 3 of this notice and remove the software program
from the published list. The Service may undertake an examination on its
own initiative or in response to a public request supported by appropriate
analysis of the software program’s deficiencies.
.05 Effect of Removal from Published List. A
software program may not be used to calculate energy consumption for purposes
of providing a certification that satisfies the requirements of § 45L
after the date on which the software is removed from the published list.
The removal will not affect the validity of any certification provided with
respect to a dwelling unit on or before the date on which the software is
removed from the published list.
.06 Public Availability of Information. RESNET
may make available for public review any information provided to it under
section 5.01 of this notice.
SECTION 6. PAPERWORK REDUCTION ACT
The collections of information contained in this notice have been reviewed
and approved by the Office of Management and Budget in accordance with the
Paperwork Reduction Act (44 U.S.C. 3507) under control number 1545-1995.
An agency may not conduct or sponsor, and a person is not required to
respond to, a collection of information unless the collection of information
displays a valid OMB control number.
The collections of information in this notice are in sections 3 and
5. This information is required to be collected and retained in order to
ensure that a dwelling unit (other than a manufactured home) meets the requirements
for the energy efficient home credit under § 45L. This information
will be used to determine whether property for which certifications are provided
is property that qualifies for the credit. The collection of information
is required to obtain a benefit. The likely respondents are corporations
The estimated total annual reporting burden is 180 hours.
The estimated annual burden per respondent varies from 2.5 hours to
4 hours, depending on individual circumstances, with an estimated average
burden of 3 hours to complete the certification required under this notice.
The estimated number of respondents is 45.
The estimated annual frequency of responses is on occasion.
Books or records relating to a collection of information must be retained
as long as their contents may become material in the administration of any
Internal Revenue law. Generally, tax returns and tax return information are
confidential, as required by 26 U.S.C. 6103.
SECTION 7. DRAFTING INFORMATION
The principal author of this notice is Jennifer C. Bernardini of the
Office of Associate Chief Counsel (Passthroughs & Special Industries).
For further information regarding this notice, contact Jennifer C. Bernardini
at (202) 622-3120 (not a toll-free call).
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