On December 23, 2019 Congress extended the Section 45L Tax Credit for Energy Efficient New Homes. Builders of single family and multi-family energy efficient dwellings can continue to earn a $2000 tax credit for each occupied unit. Legislators extended the Energy Efficient Home Tax Credit under Code Section 45L through the end of 2020.

What are the qualifications for 45L tax credit:

The energy savings requirements remain unchanged from the original tax credit inception. With today’s more stringent 2015 and 2018 IECC codes in effect, most current construction will exceed the standards and easily qualify, as the initial program requirements were based on the 2006 IECC standards. The credit is generally $2,000 for each residence/apartment/dwelling unit.

Who can apply?

• Multifamily Developers

Which buildings qualify:

• 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?

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 your dwelling(s) and complete the necessary paperwork.