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 The 45L Tax Credit, originally made effective on 1/1/2006, offers $2,000 per dwelling unit to developments with energy consumption levels significantly less than certain national energy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
The Process
The basis for developing and supporting the 45L tax credit is a detailed energy analysis that must be certified by a qualified third-party. Our multi-disciplinary team of engineers and tax experts will ensure that you obtain the maximum tax credits and provide all the documentation necessary to sustain an IRS audit. We use IRS approved software programs for the IRC Sec. 45L certification.
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Claiming the Credit
We offer a complimentary feasibility assessment that will illustrate how you can benefit from the 45L tax credit.
179D Tax Deduction
Additional tax breaks for architects and designers who implement energy efficient designs.
Sample Benefits
The Energy Efficient Home Credit offers a tax credit of $2,000 per dwelling unit to developers of energy efficient buildings completed after August 8, 2005. Below is a sample of expected benefits based on the number of qualified dwelling units.
$100,000 in 45L Tax Credits
50 qualified units
$200,000 in 45L Tax Credits
100 qualified units
$2,000,000 in 45L Tax Credits
1,000 qualified units