45L Energy Efficient Tax Credits

Builders, owners and developers of residential homes and apartment buildings have the opportunity to earn tax credits for energy efficiency, if their properties meet certain qualifications. The 45L Energy-Efficient Home Tax Credit is equal to $2,000 per residential unit or dwelling to the developers of energy-efficient buildings. Qualifying properties include apartments, condominiums, townhouses and single family homes. These valuable credits are overlooked due to a lack of understanding about the qualification process.

Note: The 45L energy-efficient residential tax credit was extended in 2019 and is in effect through the end of 2020. The tax credit was retroactively extended to include 2018 and 2019. Any unused credits can be carried over for up to 20 years.

Eligible Properties

Each unit should provide a level of energy efficiency that is higher than national energy standards; however, many of the newer developments already exceed these standards based on recent energy standards and building codes. We recommend that any apartment or condominium project developed (new construction or rehabilitation) within the past four years be evaluated for the 45L tax credit.

  • Properties must be three stories or lower.
  • Builders/owners/developers must incorporate energy-efficient features such as high R-value insulation and roofing, windows, doors, and/or HVAC systems.
  • The property must have been built between August 5, 2005 and December 21, 2020.

Tax Credit Requirements

Certification must be completed by a licensed professional that is an unrelated third party to the project. We provide 45L certifications that are evaluated, modeled and signed off by our licensed engineers. Once certification is complete you will receive a certification package with all necessary documentation and certifications to sustain the tax credit in the case of IRS audit

Recent 45L Case Studies

Condo Building Nevada-45L Case Study   Apartments California-45L Case Study

Additional Resources

  • Demystifying the Application Process to Claim the 45LEnergy-Efficient Home Tax Credit
  • FAQs: 45L Energy-Efficient Home Tax Credits
  • How to Claim the 45L Energy-Efficient Home Tax Credit

 

To learn more about how ETS can assist you with 45L Energy-Efficient Tax Credits
service or receive a 45L tax credit analysis please complete the form below or contact Engineered Tax Services at (800) 236-6519.