ENERGY STAR® Certified Homes and Apartments Can Earn Tax Credits of up to $2,500.
For homes and apartments acquired on or after January 1, 2023, earning the 45L Tax Credit now requires certification to an eligible version of the ENERGY STAR program requirements.
- Single-Family Homes – $2,500 available for homes certified to eligible ENERGY STAR Single-Family New Home (SFNH) program requirements.
- Manufactured Homes – $2,500 available for homes certified to eligible ENERGY STAR Manufactured New Home (MH) program requirements.
- Multifamily Homes – $500 available for homes certified to eligible ENERGY STAR Multifamily New Construction (MFNC) program requirements, with a larger tax credit ($2,500) available when prevailing wage requirements are met.
The 45L Tax Credit is available for homes located in the United States that meet specified energy savings requirements, were constructed by an eligible contractor, and were acquired by a person from such eligible contractor after December 31, 2022, and before January 1, 2033, for use as a residence during the taxable year for which the taxpayer is claiming the § 45L Tax Credit. Find more information at IRS Notice 2023-65.
Section 45L(a)(1) provides that an “eligible contractor” may claim the 45L tax credit. An eligible contractor is the person that constructed the qualified home, owned and had a basis in the qualified home during its construction, and sold or leased the home to a person for use as a residence.
Consult with a tax professional to determine whether and how you can claim the 45L credit and if the credit can be used with other tax incentives or federal incentives.
References:
https://www.energystar.gov/about/federal-tax-credits/ss-45l-tax-credit-home-builders
https://www.energy.gov/eere/buildings/section-45l-tax-credits-zero-energy-ready-homes
