Up to $5,000 Federal Tax Credit per Qualified Dwelling Unit. The Act provides new requirements and higher benefits for units sold or leased from January 1, 2023 through December 31, 2032.
.jpg)
Both single-family homebuilders and multifamily developers can benefit from the §45L Credit. The Inflation Reduction Act of 2022 extended the §45L Credit and introduced higher-value opportunities for qualifying homes sold or leased beginning in 2023.
For residences leased or sold prior to 2022, single-family homebuilders and multifamily developers can benefit from the §45L Credit. The maximum credits per dwelling unit are:
To claim the §45L Energy Efficient Home Credit, the property must meet specific performance and structural requirements. Both new construction and qualifying renovations may be eligible when the following conditions are satisfied:
Energy Efficiency StandardHeating and cooling performance must be at least 50% more efficient than a comparable baseline home.
Improvements to the building envelope that provide at least one fifth of that 50% reduction in energy consumption.
Eligible properties must be three stories or fewer above grade.
Properties must be sold or leased as a residence. Credits may be claimed retroactively for up to three years.
Applies to single-family homes, apartments, multifamily housing, student housing, assisted living facilities, and condominiums.
Our §45L Credit team includes HERS raters and tax professionals who perform free
assessments to prequalify your homes. Our study includes:
Each unit qualified for the $2,000 §45L credit. Across 220
units, this resulted in $440,000 in total tax savings.
Our §45L Credit team includes HERS raters and tax professionals who perform free
assessments to prequalify your homes. Our study includes:
A simplified breakdown of eligibility, certification types, and credit
values across residential property categories.
Energy Star
No
$2,500
$2,000
Zerh
No
$5,000
N/A
Energy Star
No
$2,500
$1,000
Zerh
No
$5,000
N/A
Energy Star
No
$500
$2,000
Zerh
No
$1,000
N/A
Energy Star
Yes
$2,500
N/A
Zerh
Yes
$5,000
N/A
Applies to residential units acquired for use as a residence.
Single-family includes site-built, modular homes, duplexes, and townhomes.