On behalf of the ENERGY STAR Residential New Construction program: Since the passing of the Inflation Reduction Act (IRA) and the new Section 45L Tax Credit for Energy-Efficient Homes, some partners have raised questions about the applicability of National Version 3.2 of the ENERGY STAR Single-Family New Homes (SFNH) program requirements beginning in 2025. In 2025, homes in most states can continue to be certified as ENERGY STAR using National v3.1. However, to qualify for the tax credit, homes in all states (except HI and CA) will need to be certified to National Version 3.2 for acquisitions beginning on January 1, 2025. It is important for partners to understand that the minimum eligible version that the EPA requires to certify a home may be different than the more rigorous minimum eligible version that Section 45L requires to qualify for the tax credit. For example, a home acquired in Texas on January 1, 2025, is eligible to be certified to National v3.1. However, for the builder to qualify for the tax credit, the home must be certified to National Version 3.2 As a reminder, the EPA only requires National Version 3.2 for certification in states that adopt the 2021 International Energy Conservation Code (IECC) or equivalent. To date, EPA has announced that National v3.2 will be required for certification in nine states: in CT, FL, MD, NJ, OR, VT, and WA beginning January 2025, and in IL and VA beginning January 2026. To see the minimum eligible versions required for certification, visit: www.energystar.gov/SFNHVersions To see the minimum eligible versions required for the tax credit, visit: www.energystar.gov/45Ltaxcredits For builders that may not be ready to step up to National v3.2, continuing to certify homes to National v3.1 is a great transition strategy. It may allow them to qualify for local utility incentives that remain tied to ENERGY STAR National v3.1 certification, meet corporate sustainability goals, and communicate benefits to homebuyers. Over time, as they develop cost-effective strategies to meet the National v3.2 program requirements, their homes can again become eligible for the 45L tax credit Register for the ENERGY STAR upcoming webinar here. For any questions, email energystarhomes@energystar.gov
