{"id":1551,"date":"2025-07-09T13:56:52","date_gmt":"2025-07-09T13:56:52","guid":{"rendered":"https:\/\/leyton.majjane.agency\/us\/insights\/articles\/how-to-claim-the-45l-credit-before-it-ends\/"},"modified":"-0001-11-30T00:00:00","modified_gmt":"-0001-11-29T22:00:00","slug":"how-to-claim-the-45l-credit-before-it-ends","status":"publish","type":"article","link":"https:\/\/leyton.com\/us\/insights\/articles\/how-to-claim-the-45l-credit-before-it-ends\/","title":{"rendered":"How to Claim the 45L Credit Before It Ends"},"content":{"rendered":"

The 45L Credit Is Ending Sooner Than Expected<\/h2>\n

The passing of the One Big Beautiful Bill<\/a><\/strong> made many big changes to the United States tax code. The bill brought back 100% bonus depreciation<\/strong>, which is a major win for developers. However, while the bill added building incentives it also took many away. <\/p>\n

One credit that is getting its lifespan cut short by the OBBB is the 45L Energy Efficient Home Tax credit<\/a><\/strong>. Originally, authorized through 2032 by the Inflation Reduction Act. Builders will now only be able to claim 45L on buildings acquired before June 30th<\/sup>, 2026<\/strong>. Which cuts the credit\u2019s lifespan short by 8 years<\/strong>. <\/p>\n

To qualify, builders would have to have their building completed and residential units bought<\/strong> or leased before<\/strong> June 30th<\/sup> 2026<\/strong>. <\/p>\n

Since multifamily projects take about 16 months, many builders won\u2019t finish in time to claim the 45L credit, unless construction has already started<\/p>\n

Single family builders <\/strong>will have more opportunities to claim the 45L tax credit before it disappears<\/strong>. But building one unit at a time limits the total credit they can claim before the deadline.<\/p>\n

2022 Construction Projects Might Still Qualify<\/h2>\n

While the future of 45L<\/strong> past June 30th<\/sup> 2026 <\/strong>is up in the air, there is one opportunity that has gone largely unnoticed. <\/p>\n

In 2022, the 45L tax credit<\/strong> lapsed. Congress was negotiating the Inflation Reduction Act <\/strong>and did not reauthorize it in 2022. When the IRA <\/strong>was passed in 2023, congress made up for its mistake by retroactively authorizing it for 2022. <\/p>\n

What this meant is that for people who built qualified energy efficient homes were unable to initially claim the 45L tax credit<\/strong>, they could claim it through amending an open tax year return<\/strong> and claim after 2022 though. <\/p>\n

Open tax years allow filers to look back up to three years from the date they filed their returns; to amend their previous taxes and claim credits or deductions they might have missed at the time. <\/p>\n

Many builders who completed projects in 2022<\/strong>, may not be aware that they are still eligible to claim the 45L tax credit<\/strong>. They will have until April 15th<\/sup> or October 15th<\/sup>, 2026 to claim any 45L tax credits <\/strong>that they did not claim in 2022.<\/p>\n

2022 <\/strong>was a banner year for new home construction, with almost 1.5 million new homes <\/strong>built in that year since the Great Recession of 2008. That means there is a potential $3 billion dollars in credits left unclaimed<\/strong> assuming all the buildings meet the requirements of an energy efficient building.<\/p>\n

At the time buildings can qualify for 45L if they had a 50% reduction in heating and cooling loads<\/strong> compared to 2006 IECC homes. Many homes could have qualified as an Energy Efficient<\/a><\/strong> Home <\/strong>in their efforts to meet local code requirements, without ever realizing they can qualify for the 45L credit. <\/p>\n

Secure Your Claim Before the 45L Credit Disappears<\/h2>\n

Any builders who completed homes <\/strong>or multifamily buildings under 3 stories in 2021 and\/or 2022<\/strong>, should reach out to Leyton to see if their buildings are eligible for the 45L tax credit<\/a><\/strong>.<\/p>\n

Leyton\u2019s team will do a complimentary review before any engagement, so builders can feel make the right financial decisions for their company. <\/p>\n

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Find out if your building qualifies for 45L<\/a><\/div>\n<\/div>\n
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References<\/h2>\n