Contractors, Builders & Property Owners
Contractors and builders of energy efficient apartments and homes are able to reward their efforts by obtaining 45L Energy Efficient Home Credits. 45L is a lucrative tax incentive for the construction or renovation of single-family homes and low-rise residential buildings that have reduced its energy consumption by 50%.
45L allows qualifying builders and contractors to collect up to $2,000 for each unit of property that meets the certified energy efficient standards.
Eligible contractors and builders must own and have a basis in the qualified energy efficient home during its construction.
Eligible contractors / builders are defined by the IRS as
- A trust
- An estate
- A partnership
- An association
- A company
- A corporation
In order to receive the benefits, builders and contractors must apply and document their installments before the construction crew breaks ground.
Qualifying project characteristics
- Project must be three stories or less above ground (not including below-grade parking)
- Project must be built on the territory of the United States
- Project must meet construction standards based on those set by the 2006 International Energy Conservation Code (IECC)
- Project must be completed between August 8, 2005, and December 31, 2020
- Construction can include “substantial” rehabilitation and reconstruction
Energy efficient features include
- Wall insulation R-13+
- Roof insulation R-38+
- Foundations and slabs with extra insulation
- Vinyl low thermal emissivity windows
- Double or triple pane windows
- Insulated exterior doors
- Reflective roofing materials
- Air conditioning with SEER (Seasonal Energy Efficiency Rating) of 13+
- Gas furnaces with at least 80 percent efficiency, or radiant heating system