2025 Energy Program Compliance: Key Changes You Need to Know!
It’s a new year, which means new program updates and compliance dates! Below is a comprehensive breakdown of important information regarding green building programs’ standards compliance.
Important Program Compliance Dates Starting January 1st, 2025
- ENERGY STAR Single Family New Homes (ES SFNH) Version 3.1 can still be used in most states. However, any home acquired after January 1st, 2025, must comply with ENERGY STAR SFNH Version 3.2 to be eligible for the 45L tax credit, even if it was permitted under the prior version for certification.
- NOTE: ENERGY STAR Multifamily New Construction (ES MFNC) projects can continue to use Version 1.1 for projects acquired in 2025 and 2026. Starting in 2027, projects will need to meet the requirements of MFNC Version 1.2.
- MFNC Revision 04 is now required for permits applied for after January 1st, 2025, to ensure both ENERGY STAR compliance and eligibility for the 45L Tax Credit.
- SFNH Revision 13 is now required for permits received after January 1st, 2025, regardless of the Version, for both ENERGY STAR compliance and eligibility for the 45L Tax Credit.
- Sampling will no longer be permitted for ES SFNH projects that receive permits after January 1, 2025. However, ES MFNC projects are still allowed to conduct sampling Ratings.
- NOTE: Townhomes may continue to use sampling with ES MFNC Revision 03 if the permit was applied for before January 1, 2025.
- The Department of Energy’s Zero Energy Ready Homes (DOE ZERH) Version 1, Revision 09 will no longer be available for multifamily projects. Starting January 1, 2025, any project that receives a permit (even if applied for in 2024) must comply with ZERH Multifamily Version 2.
- DOE ZERH single-family projects must now meet Version 2, Revision 2 for any project that receives a permit after January 1, 2025, even if the permit application was submitted in 2024.
Definitions of Permit Date by program:
ES SFNH, ZERH SFv2, ZERH MFv1Rev 09: Application date CANNOT be used.
The ‘permit date’ is the date on which the permit authorizing construction of the building was issued. Alternatively, the date of the Rater’s first site visit or the date of the contract on the home is allowed to be used as the ‘permit date’. The permit application date is not allowed to be used.
ES MFNC, ZERH MFv2: Application date CAN be used.
The ‘permit date’ is the date on which the permit authorizing construction of the building was issued. Alternatively, the date of the Rater’s first site visit or the application date of the permit is allowed to be used as the ‘permit date.’
RESNET Mandatory Compliance Date for new Sampling Protocol: Application date CAN be used (NOTE: this doesn’t apply to ES SFNH sampling!)
Mandatory Compliance Date is the date on which compliance with an amendment approved for publication shall be required for any Dwelling Unit or Sleeping Unit with a Building Permit Date on or after that date. Alternatively, the date of the HERS Rater or RFI’s first site visit, the date of the application of the permit, the date of the contract on the home, or the date of an application for low-income tax credits or government administered competitive financing for a project meeting the State or local government definition for low income or affordable housing are permitted to be used as the Building Permit Date.
45L Tax Credit:
The tax credit for ENERGY STAR certification is not based on permit date, but based on the Version eligible in the year it was acquired. For example, if a single-family project was acquired in 2024, it may still use ES SFNH v3.1 as opposed to v3.2 to qualify for 45L. For more information about 45L and ENERGY STAR, please click here: https://www.energystar.gov/about/federal-tax-credits/ss-45l-tax-credits-home-builders#tab-2.
The tax credit for ZERH is based on the use of the correct program version at the time the permit is issued. This aligns with permitting requirements for both ZERH single-family and multi-family programs. For more information about 45L and ZERH, please click here:
https://www.energy.gov/eere/buildings/section-45l-tax-credits-zero-energy-ready-homes.
Is a dwelling unit certified under DOE ZERH Version 1 eligible for the 45L tax credit if it was permitted in 2023 but not certified until 2024?
Answer: Yes. Section 6.03 of IRS Notice 2023-65 provides that certification requirements for the effective DOE ZERH program are provided on the DOE ZERH Webpage, which includes a table of effective dates based on permit date, location, and building type. For a dwelling unit permitted in 2023, the effective DOE ZERH program version is Version 1, Revision 8, regardless of when the dwelling unit is certified or acquired. Note: The eligible contractor cannot claim the 45L tax credit for the DOE ZERH-certified dwelling unit until the year in which it is acquired.