§45L Energy Efficient Home Tax Credit

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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

    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

    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

    Tax Scenario §45L Energy Efficient Home Tax Credit

    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 Energy Efficient Home Tax Credit

    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 Energy Efficient Home Tax Credit

    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 Rental Property
    • Number of Stories 3
    • Number of Units 402
    • Units Placed in Service 2020
    • Systems Placed in Service 2020
    • Number of Units Qualified 402
    • Credit Per Unit $2,000

    CREDIT CLAIM

    $804,000 Start your claim arrow_outward arrow_outward
    Energy Efficiency Experts

    Great People
    Define our Success

    Our team of Energy Efficiency Experts is comprised of dedicated Professional Engineers, all of whom are focused on helping businesses claim Energy Efficiency Incentives. Mark has 17 years of expertise in energy efficiency, team leadership, and engineering. Taylor is a licensed Professional Engineer in 45 states. Combined both Mark and Taylor have conducted over 4,000 energy studies, including energy modeling, site inspections, and certifications of results.

    Mark Bacon, PE

    Practice Lead- Energy Efficiency

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    Taylor Beamer, PE

    179D Engineering Manager

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    Our in-house team of highly experienced scientists, engineers, tax consultants and attorneys would love to answer all your questions and support your compliance.

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