Section 45L of the Internal Revenue Code (IRC) is the federal tax incentive that promotes the construction of energy-efficient residential properties. § 45L, also known as the Energy Efficient Home Credit, offers builders, contractors, and developers a tax credit for designing and constructing energy-efficient residential properties that are newly built or substantially remodeled that meet applicable ENERGY STAR home program or DOE Zero Energy Ready Home (ZERH) program requirements.
§ 45L Tax Credit is determined on a per-unit basis, using the sale or lease date of each unit. For developers working on phased construction projects, this often means claiming the credit across multiple tax years. Only units sold or leased within the current tax year are eligible for the § 45L Tax Credit.
2022 or earlier: Up to $2,000 per unit credit
2023 and forward: Up to $5,000 per unit credit
Optimize your tax benefits with Specialty Tax Advisors and propel your profitability!
(833) 273-4949
220 Newport Center Drive, Suite 460
Newport Beach, CA 92660
