Easy Ways to Make your Properties Energy Efficient and Take Advantage of the 45L Credit

Eligible contractors and home builders’ savings add up when their constructed or renovated residences meet the energy-efficient threshold.

Extended through 2020, the 45L tax credit is a lucrative and often unknown tax benefit that can quickly add up to cash savings for professionals in the building and construction industries. This credit is also known as the Energy Efficient Home Credit. Under this provision, all developers, contractors and property owners who qualify can receive a $2,000 tax credit per unit in their energy-efficient property.

Energy improvements help reduce a property’s carbon footprint, and the government rewards professionals that take these steps to be more environmentally-friendly. In addition to being better for the earth, energy-efficient homes often lead to cost savings down the line for the owners or renters who inhabit the building.

Benefits of an Energy Efficient Building:

  • Greater resale value and return on investment
  • Better protection against weather, such as heavy rain, snow or hail.
  • More noise reduction between units and adjacent buildings
  • Improved indoor air quality, which can lessen residents’ allergy symptoms
  • Less noise pollution from appliances such as HVAC units and laundry machines
  • Greater savings on electric, gas and/or water bills

Not only can you claim the 45L credit for the 2019 tax year, but you can also spread out your credit over past years. For example, if you own a residence with 50 units and qualify for a credit that reduces your total tax liability below the Alternative Minimum Tax for 2019, you do not have to leave money on the table. With the help of National Tax Group, you may be able to redirect the credits to the 2018 tax year and carry it forward up to 20 years.

The 45L credit can also apply to residential properties that are currently under construction, or to properties that have been renovated in order to become more energy efficient. We can help you determine if a dwelling qualifies by setting up an inspection with an accredited or authorized RESNET certifier. This is a key eligibility requirement for applying for your 45L credit. Our team cannot only assist you in claiming this year’s tax benefits, but we can also retroactively claim your credits up to three tax years.

Advantages of the 45L Credit:

  • Substantial value for the applicant
  • Creates fewer energy demands
  • Appealing tax status for future investors

National Tax Group can help determine if your properties would qualify for 45L or other tax incentives. Contact us at (561) 257-3436 to contact our quality tax group and learn more.

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