The EPA has established a transition schedule to advance the minimum program requirements for ENERGY STAR certification in states that have adopted the 2021 international Energy Conservation Code (IECC), or an equivalently stringent code.

Home builders should be aware that the §45L tax credit may require a more rigorous version of Energy Star than the EPA currently requires for certification in their state. To see the minimum eligible version required for the tax credit in each state, visit Energystar.gov

§ 45L tax credit requirements for single family new homes:

Single-Family New Homes in states that have adopted the 2021 IECC will no longer be eligible with Energy Star v3.1. Version 3.2 of the ENERGY STAR Single-Family New Homes (SFNH) National Program Requirements will be required for certification of single-family homes in the following states:

• For homes permitted on or After 1/1/2025: Connecticut, Florida, Maryland, New Jersey, Oregon, Vermont and Washington
• For homes permitted on or after 1/1/2026: Illinois and Virginia

Builders who are improving their building practices to comply with 2021 IECC are much closer to achieving Energy Star v3.2 certification than ever before. Respectively, these builders are also closer than ever before to qualifying for the § 45L tax credit.

§ 45L tax credit requirements for multifamily new construction:

Version 1.2 of the ENERGY STAR Multifamily New Construction (MFNC) National Program Requirements will be required for certification of multifamily buildings permitted on or after January 1, 2027, in Connecticut, Florida, Illinois, Maryland, New Jersey, Ohio, Oregon, Vermont, Virginia, and Washington.

Reminder: the two primary differences between these versions and their predecessors are the more aggressive performance target and more rigorous thermal backstop.