45L Tax Credit
The Energy Efficient Homes Credit is a 45L Tax Credit that offers $2,000 per dwelling unit to multifamily developers and single family home builders. It can be a great incentive for those looking to offer homeowner efficient spaces without breaking the bank.
To be eligible for the credit, several key conditions must be met. These include...
Defined as a "dwelling unit". This is any unit providing complete independent living facilities for one or more persons.
- Completed after August 8, 2005.
- Located in the United States.
- Meets the requirements for Code Section 45L(c). See below for standard practices.
- Certified by a third party provider such as 15 Lightyears.
Who Can Benefit?
- Production Home Developments
- Low Income Housing
- Apartment Buildings
- Residential Condos
- Student Housing
- Substantial Reconstruction Projects
The following are energy efficient upgrades that may make you eligible for the Energy Efficient Homes Credit. While certification is performance based rather than a prescriptive, these are all general requirements for attaining the 45L tax credit.
- Wall insulation R-13 through R-19 and above
- Attic insulation minimum R-38
- Radiant barrier
- Foam injected concrete Blocks R-9 and above or ICF block
- Energy Star or Low-E windows with <0.28 U factor and <0.30 SHGC.
- Insulated exterior doors
- Reflective roofing materials
- Extra insulated foundations and slab
- HVAC SEER Rating 16 or higher (15 may be acceptable is some cases).
- Mechanical ventilation or exhaust fans required in at least one bathroom
- R13 frame walls.