45L

Jul 17, 2025

The §45L Energy Efficient Home Credit is set to expire for homes sold or leased after June 30, 2026, as mandated by the One Big Beautiful Bill Act of 2025. To qualify, units must be certified and sold or leased by that date. Current credit amounts include $2,500 per unit for single-family homes certified as ENERGY STAR, and $5,000 per unit for those certified under the DOE Zero Energy Ready Home (ZERH) program. Manufactured homes meeting ENERGY STAR or ZERH standards qualify for the same respective credit amounts. For multifamily buildings built after 2020, the credit is $500 per ENERGY STAR-certified unit, or $2,500 per unit if prevailing wage requirements are met. ZERH-certified multifamily units are eligible for $1,000 each, or $5,000 per unit with prevailing wage. For homes sold or leased prior to 2020, the credit amounts are $2,000 per unit for new energy-efficient homes and $1,000 per unit for manufactured homes. With the expiration date approaching, developers should act now to secure these valuable credits....

May 14, 2025

The §45L Tax Credit and EnergyStar are currently intertwined. Losing one jeopardizes the other, significantly impacting our ability to build energy-efficient homes. The §45L credit is crucial for our industry's financial viability and environmental progress. Losing EnergyStar would severely hinder our ability to build sustainable housing. The §45L Tax Credit is our country’s last remaining federal incentive for residential builders....

Sep 28, 2023

On September 27, 2023, the IRS released guidance on §45L New Energy Efficient Home Credit (§45L Credit) through Notice 2023-65. The guidance provided in this notice addresses: (i) the person that is eligible for the credit, (ii) determining the applicable amount of the credit, (iii) energy saving requirements, (iv) certification requirements, and (v) substantiation requirements....

Aug 16, 2022

President Biden signed Into Law H.R. 5376, The Inflation Reduction Act of 2022. The Act extended the 45L credit for homes sold or leased during 2022 with little modification. Thus, residences sold or leased in 2022 would qualify for the 45L credit using the 2021 energy efficiency standards. However, from January 1, 2023 through December 31, 2032, the Act significantly changes the 45L Energy Efficient Home Credit with new provisions and requirements. ...

May 4, 2022

The new smaller version of the proposed Build Back Better legislation includes details that will extend and limit the 45L tax credit to Energy Star and Zero Energy Ready homes. The U.S. House Select Committee on the Climate Crisis met on April 7th and heard testimony from the American Public Gas Association, the Alliance to Save Energy, and the...

Apr 13, 2021

The ‘Growing Renewable Energy and Efficiency Now’ (GREEN) Act, aims to extend and boost tax incentives for energy efficiency and renewable energy. If passed, the GREEN Act would make both the 45L Energy Efficient Home Credit (45L Credit) and the 179D Energy Efficient Commercial Building Deduction (179D Deduction) more advantageous while furthering the green missions of these incentives....

Dec 28, 2020

The passing of the latest coronavirus relief bill titled the 'Consolidated Appropriations Act, 2021' ("CAA 2021") made permanent the §179D Energy Efficient Commercial Building Deduction (§179D Deduction) and extended the §45L Energy Efficient Home Credit (§45L Credit) through December 31, 2021....