Alabama - ICS Tax, LLC

Helping Alabama Taxpayers with the
§45L Energy Efficient Home Credit

Helping Alabama Taxpayers with the
§45L Energy Efficient Home Credit

§45L CREDIT ALABAMA

The §45L Energy Efficient Home Credit, as established by the Energy Policy Act of 2005, allows eligible developers in Alabama 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.

§45L CREDIT REQUIREMENTS

Single Family Homes Benefits and Requirements

$2,500 tax credit for single family homes certified as ENERGY STAR Single Family New Homes Program Version 3.1. (For homes constructed before January 1, 2025 and Version 3.2 thereafter).
$5,000 tax credit for single family homes certified as DOE Zero Energy Ready Home (ZERH).

Manufactured Homes Benefits and Requirements

$2,500 tax credit for manufactured homes certified as ENERGY STAR Manufactured Home National Program requirements.
$5,000 tax credit for manufactured homes certified as DOE Zero Energy Ready Home (ZERH).

Multifamily Homes Benefits and Requirements

$500 tax credit for multifamily homes constructed after 2020 and certified as ENERGY STAR Single Family New Homes Program. When constructed with prevailing wages, the credit increases to $2,500.
$1,000 tax credit for multifamily homes certified as DOE Zero Energy Ready Home. When constructed with prevailing wages, the credit increases to $5,000.

» §45L Credit Summary
» §45L Credit for 2022 and Prior
» §45L Credit Extended by The Inflation Reduction Act

HELPING ALABAMA WITH §45L CREDITS

ICS Tax can perform free assessments to pre-qualify the residences, coordinate with your tax preparer to claim the credit, and provide the certifications of compliance. Our §45L Credit team includes HERS raters and tax professionals who will perform free assessments to prequalify your Alabama homes. Our complete study includes energy models, certificates, and audit support.

ABOUT US

ICS Tax, LLC (ICS) is a consulting firm providing innovative tax planning strategies. ICS collaborates with taxpayers and their tax professionals to identify credits and incentives that reduce tax liabilities and increase profitability. We serve Birmingham, Montgomery, Huntsville, Mobile, Tuscaloosa and all other cities within Alabama and throughout the nation.