§45L Energy Efficient Home Tax Credit

45L Energy Efficient Home Tax Credit

Improving Business Performance Through Sustainability & ESG

Discover your eligibility for the 45L Energy Efficiency Tax Credit

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You can save up to:

£ 00,000.00*

Please note that the estimates provided by this 45L Energy Calculator are based on the information you have provided and should not be solely relied upon for claiming deductions under Section 45L of the United States Internal Revenue Code. The calculator may not fully account for all factors that could affect your eligibility for these deductions, and the information provided is of a general nature and should not be construed as legal, accounting, or tax advice. It is recommended that you seek advice from a qualified professional for specific guidance on your unique situation. Use of this calculator is at your own risk.

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What is the §45L Energy Efficient Home Tax Credit?

The §45L provides builders, contractors, and developers the opportunity to claim a tax credit for designing and constructing energy-efficient homes. Eligible types of buildings include residential buildings such as single and multifamily homes, apartment buildings, townhouses, student housing, and assisted living facilities

Projects that place into service after 2023 require Energy Star to receive the 45L Tax Credit. Leyton is an Energy Star partner and can provide certifications for your projects.

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§45L under OBBB:

Expires for projects acquired after June 30, 2026.

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What are the requirements?

1
Located within the US
2
Sold or first leased during the relevant taxable year
3
Buildings placed in service before January 1, 2023, must have a maximum of three floors above grade
4
Meet energy savings thresholds using Residential Energy Services Network (RESNET) for buildings placed in service before January 1, 2023, and either Zero Energy Ready Home Program or Energy Star for buildings placed in service after January 1, 2023

How much is the §45L Energy Efficient Home Tax Credit worth?

2022 or earlier

Up to $2,000 per unit credit

2023 and forward

Up to $5,000 per unit credit

Tax Scenario §45L

Our commercial developer client built a multifamily housing unit in New York and they were able to fully qualify for the 45L credit

Type of Building Residential rental property
Number of Stories 2
Number of Units 53
Units Placed in Service 2021
Systems Placed in Service 2021
Number of Units Qualified 53
Credit Per Unit $2,000

CREDIT CLAIM

$106,000 Start your claim arrow_outward arrow_outward

Tax Scenario §45L

Our client retrofitted 27 units in a 146 unit apartment complex they had recently purchased all 27 of the retrofitted units were able to receive the 45L credit

Type of Building Residential rental property
Number of Stories 3
Number of Units 146
Units Placed in Service 2021
Systems Placed in Service 2021
Number of Units Qualified 27
Credit Per Unit $2,000

CREDIT CLAIM

$54,000 Start your claim arrow_outward arrow_outward

Tax Scenario §45L

Our commercial developer client built a large multifamily housing unit in Texas and they were able to fully qualify for the 45L credit

Type of Building Residential Single Family Property
Energy Star Certified Yes
Number of Units 53
Units Placed in Service 2024
Certificate of Occupancy Received 2024
Number of Units Qualified 53
Credit Per Unit $2,500

CREDIT CLAIM

$132,500 Start your claim arrow_outward arrow_outward

Leyton’s Steps for Success

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Carry out a feasibility study to determine the likelihood of qualification
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Develop an energy model of the building using IRS-approved software
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Arrange an inspection by a qualified rater to INSPECT the building, conduct on-site testing
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Qualified rater will provide a certification that the dwelling unit meets the requirements of section 45L(c)
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Provide a report summarizing all findings and the information to claim the credit on the Energy Efficient Home Credit Form 8908

Did you know Leyton is an Energy Star Rating Partner?

At Leyton, we are passionate about sustainability and helping businesses become more energy efficient. That’s why we’re excited to share our alignment with the Energy Star program. This collaboration is a significant step in our ongoing mission to find funding opportunities that help build a more energy efficient world.

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Great People
Define our Success

Our team of Energy Efficiency Experts is comprised of dedicated Professional Engineers and Energy Consultants, all of whom are focused in helping businesses claim Energy Efficiency Incentives. Combined, our experts have conducted over 10,000 energy studies, including energy modeling, site inspections, and certifications of results.