Eligible contractors use Form 8908, “Energy Efficient Home Credit,” to claim the credit, which is a component of the General Business Credit. Therefore, the amount of credit from Form 8908 is transferred to Form 3800. Note: at publication it is unknown if Form 3800 will be modified for the post 2021-year credit or if the IRS will develop a new form.

The contractor must reduce the basis of the home for which the credit is claimed by the amount of the credit.

It is located in the U.S.

California has no similar credit and no basis adjustment for the federal credit needs to be made for California.