The 45L tax credit can only be claimed by the qualified contractor, typically the developer, builder, or homeowner. They must own the property during its construction or improvement.

Any builder registered with ENERGY STAR is eligible.

The IRS approves the following third-party modeling software: Ekotrope, REM/RATE, EnergyGuage, EnergyPro, and Micropas.

DOE zero-energy ready standards include Indoor airPlus and ENERGY STAR certification as a baseline, but they demand stricter criteria for most components.

In the case of affordable housing, new credits won't reduce the LIHTC basis. Developers can benefit from both the 45L and LIHTC.

Energy-efficient certified homes generally sell faster and at higher prices than homes without such certifications.

Newly constructed homes or substantially renovated single-family detached, duplexes, townhouses, apartments, and condominiums are all eligible. This includes projects like assisted living and student housing. Market rate, affordable housing, and condominiums are also included.

Multifamily projects with four or more stories can now qualify for the 45L credit. Previously limited to buildings with three stories or less, this update allows all multifamily projects to access the credit at $2,500/$5,000 per unit, with prevailing wage requirements.

Prevailing wages are determined by local economies. You can find the applicable rates for your area on this website: Davis Bacon Wage Rate Determination–Office of Construction & Facilities Management (va.gov).

Manufactured homes meeting ENERGY STAR Labeled Home requirements can qualify for a $1,000 credit.

The tax credit has increased from the current $2,000 (as of 2021) for meeting outdated IECC references to $2,500 for meeting ENERGY STAR criteria and $5,000 for meeting DOE Zero-Energy ready standards.

• Insulation
• Energy-efficient windows and doors
• Energy-efficient roofs
• Energy-efficient heating and cooling systems
• Energy-efficient water heaters

No, the credit is only available for improvements made to a taxpayer's principal residence.

No, the credit is only available for improvements made to a taxpayer's principal residence.

Yes, the credit range is from $2,000 - $5, 000per tax year.

No, the credit is only available for improvements made in 2018, 2019, and 2020.

Yes, you can still claim the credit as long as you have not received a grant or rebate for the full cost of the improvement.

No, the credit is not available for improvements for which you have already received a tax credit or deduction. Is a one-time federal tax credit.

Yes, there is no income limit for claiming the 45L renovation credit.