Section 45L Tax Credit

Recent tax legislation extended the Energy Efficient Home Credit which offers a 45L Tax Credit of $2,000 per dwelling unit to developers of energy efficient apartment buildings and homes.

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. Given that current energy codes have evolved tremendously over the past five years, many developers are already building to specifications that would meet the criteria for this credit. All apartment buildings and residential condominium developments completed within the last 4 years are worth assessing for potential 45L tax credits. Eligible construction also includes substantial reconstruction and rehabilitation. Developers can still claim the 45L tax credit retroactively if they did not claim them on previous tax returns.

Who can benefit?
Apartment, Condominium, and Single-Family Residence Developers.
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. The following types of projects should be considered:

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

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.

KBKG Advantage

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As one of the premier service providers in the industry, we are passionate about helping business owners and accounting professionals across the country identify, claim and—when needed—defend their tax savings strategies. Our KBKG Advantage is the reason why clients turn to us time and time again for assistance. For superior teamwork, tailored service, and assurance backed by our KBKG Audit Guarantee, you can rely on KBKG. Learn more...

45L Experts

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You may qualify for 45L if you have developed, constructed or substantially renovated an apartment, condo or single family residence with 15 units or more since 2016. 

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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

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