Revised Build Back Better Legislation Could Extend and Modify the 45L Tax Credit

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 Building Performance Association. The committee agreed to include tax credits for energy efficiency. The new bill will likely be part of the Congressional budget reconciliation process later this year. If passed, the 45L tax credit would be extended and become retroactive to January 1, 2022.

ICS Tax provides innovative tax planning strategies and specializes in both the 45L and 179D tax incentives. Together with you and your tax advisors, we can identify credits and incentives that will reduce tax liabilities and increase profitability. Our nationwide experts are ready to help. » Learn more about 45L and get a proposal