Section 45L Tax Credit

Recent tax legislation extended the Energy Efficient Home Credit to developers of energy efficient homes and apartment buildings. The 45L Tax Credit, originally made effective on 1/1/2006, offers $2,000 per dwelling unit to developments with energy consumption levels significantly less than certain national energy standards.

Eligible 45L Tax Credit Apartment Buildings & Condos:
A dwelling unit should provide a level of heating and cooling energy consumption that is significantly less than certain national energy standards, dependent on when the unit is sold or leased. Based on current construction trends, many developments already exceed these standards. All residential developments and apartment buildings completed within the last 4 years are worth assessing for potential 45L tax credits. Eligible construction also includes substantial reconstruction and rehabilitation. Homebuilders and developers can still claim the 45L tax credit retroactively if they did not claim them on previous tax returns.

Who can benefit?
• Homebuilders
• Multifamily Developers

The following types of projects should be considered:

• Affordable housing (LIHTC)
• Apartment buildings
• Assisted living housing
• Production home developments
• Residential condominiums
• Student housing
• Substantial reconstruction or rehabilitation