Developers and builders of single-family homes and multifamily buildings may benefit from recent legislation extending the Section 45L Energy Efficient Home Credit.
- A tax credit of $2,000 per dwelling unit is available for qualifying properties
- Buildings placed in service between 2018 and 2020 are eligible
- Projects located where building codes have a strong energy efficiency requirements are great candidates for this tax credit
- Single-family homes (Buyers may qualify if tax credit is unclaimed)
- Multifamily up to 3 stories above grade (excludes below-grade parking)
- New construction, substantial reconstruction, and rehabilitation
To claim the tax credit, each dwelling unit must consume at least 50% less energy for heating and cooling than a comparable dwelling unit under the 2006 IECC (International Energy Conservation Code). Improvements to the building envelope must account for at least 10% of the overall reduction. Improvements must be certified by an eligible certifier that is qualified under RESNET, CA HERS Rater or an equivalent rating standard.
Partner Energy has certified professionals on staff that can provided energy modeling and on-site inspection & verification to help you determine if your property qualifies for the Section 45L tax credit and issue signed 45L certificates to builders.