On December 23, 2019 Congress extended the Section 45L Tax Credit for Energy Efficient New Homes and has made it retro-active. Builders of single family and multi-family energy efficient dwellings built between 2018-2020 are eligible to earn the $2000 tax break. Have a HERS Rating done to calculate the homes' energy efficiency and get the necessary compliance documents.

What are the energy efficiency requirements for 45L tax credit?

The energy savings requirements remain unchanged from the original tax credit inception. With today’s more stringent IECC 2015 and 2018 codes in effect, most current construction will exceed the standards and easily qualify. Homes must be 50% more efficient on heating, cooling and hot water use than the IECC 2006 standards. While a HERS rating is needed to measure efficiency, a defined HERS score is not part of the requirement. The credit is generally $2,000 for each residence, apartment, or dwelling unit.

Who is eligible?

• Multifamily Developers

What qualifies for 45L Tax Credit?

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

What's the process to get the tax credit?

In order from your property to qualify for the 45L tax credit each dwelling must have a detailed energy analysis that is certified by a qualified third-party. Priority Energy’s HERS Raters and incentive specialists are very familiar with the program and IECC standards. They can help you design a qualifying project, certify a dwelling(s) and complete the necessary paperwork.