About the §45L Tax Credit
The Tax Relief, Unemployment Insurance Reauthorization, and Job Creation Act of 2010 extended the Energy Efficient Home Credit which offers a 45L tax credit of $2,000 per dwelling unit to developers of 45L energy efficient residential buildings completed after August 8, 2005.
Eligible Apartment Buildings, Condos, & Single Family Home Developments For 45L
A dwelling unit should provide a level of heating and cooling energy consumption that is significantly less than certain 2004 energy standards. Based on current construction trends and local building codes, many developments already exceed these standards for 45L.
30 qualified 45L units = $60,000 in tax credits
60 qualified 45L units = $120,000 in tax credits
100 qualified 45L units = $200,000 in tax credits
200 qualified 45L units = $400,000 in tax credits
500 qualified 45L units = $1,000,000 in tax credits
1000 qualified 45L units = $2,000,000 in tax credits
Ideal Candidates for 45L
All apartment buildings, residential condominiums, and single family home developments completed on or after August 8, 2005 with 10 or more units are worth assessing for 45L energy tax credits. Eligible construction also includes substantial reconstruction and rehabilitation. Additionally, IRC 45L allows for a $1,000 or $2,000 tax credit for manufactured homes that meet the criteria.