A $2,000 Federal Tax Credit per Qualified Dwelling Unit
Up to $5,000 Federal Tax Credit per Qualified Dwelling Unit
The §45L Energy Efficient Home Credit, as established by the Energy Policy Act of 2005, allows eligible developers to claim a tax credit for each dwelling unit. Both single family homebuilders and multifamily developers can benefit from the §45L Credit. The Inflation Reduction Act of 2022 extended the §45L Credit for homes sold or leased during 2022 with little modification.
The Act provides new requirements and higher benefits for units sold or leased from January 1, 2023 through December 31, 2032.
» Learn about the §45L Credit for 2022 and prior.
Single Family Homes Benefits and Requirements
Manufactured Homes Benefits and Requirements
Multifamily Homes Benefits and Requirements
Buildings Higher Than Three Stories are Eligible
Beginning 2023, all residential buildings are eligible. Homes leased or sold as a residence within buildings higher than three stories are eligible, including:
1. Acquired by a person for use as a residence
2. Single Family includes site-built and modular single family homes, duplexes and townhomes
Our §45L Credit team includes HERS raters and tax professionals who will perform free assessments to prequalify your homes. Our study includes:
For residences leased or sold prior 2022, single family homebuilders and multifamily developers can benefit from the §45L Credit. The maximum credits per dwelling unit are:
An eligible contractor must have constructed a qualified energy efficient home, as well as owned and have had a basis in the home during its construction. Both new construction and renovations to existing residences are eligible when they meet the following qualifications:
The credit applies to single-family homes as well as apartment complexes, assisted living facilities, student housing and condominiums. Each unit in a multifamily residential facility may qualify.
Each unit in a newly constructed apartment community qualified for the $2,000 per unit §45L Credit. With 220 units, the developer received a total tax credit of $500,000.