45l Energy Efficient Home Credit
The 45L Tax Credit is available to single-family and multi-family builders as well as manufactured home producers for exceeding certain energy standards.
For years prior to 2023, the credit is $2,000 per dwelling unit to be claimed in the tax year each unit is first sold or leased. The credit can be claimed for newly constructed and substantially renovated homes and apartments as well as manufactured homes. We are able to certify units up to three years prior to the filing date for each year by amending tax returns. (Some exceptions apply, and certain parameters must be met).
For 2023, the credit and the requirements for it have changed. The Inflation Reduction Act of 2022 extended the credit through 2032. Beginning January 1, 2023 the new structure and requirements are as follows:
- For qualified single family and manufactured homes first acquired for use as a residence in 2023, the credit jumps to:
- $2,500 with Energy Star becoming the new base qualification standard
- $5,000 with Zero Energy Ready Home qualification
- For qualified multifamily units first acquired for use as a residence in 2023, the credit is:
- $500 per unit with Energy Star base qualification, potentially up to $2,500 if the taxpayer meets the additional prevailing wage requirement
- $1,000 per unit with Zero Energy Ready qualification, potentially up to $5,000 with the prevailing wage requirement
- Low Income Housing Tax Credit (LIHTC) properties no longer must reduce their adjusted basis under Section 42. This has been a major issue for LIHTC developers, requiring excess basis in the property to take advantage of 45L. LIHTC properties become a huge 45L opportunity area starting in 2023.
Claiming the credit for years prior to 2023 as well as 2023 and beyond requires energy modeling, inspections, and certification from an eligible certifier .
Find out if you qualify, by contacting us today for a no cost analysis
OUR PROCESS
Certifying homes and buildings under the 45L program is a complex process with many nuances. Our mission is to maximize the number of certified structures for our clients while fully adhering to 45L program guidelines. To achieve this, we go beyond automated assessments, dedicating extra time to meticulous manual analysis that compliments our government-approved rating software.
We strive to make the 45L certification process as simple and seamless as possible for our clients. Our team works closely with you to identify the most cost-effective approach to maximizing tax refunds for previous years and tax credits for current and future years.
If we identify any gaps in your building practices or materials that affect 45L qualification, we provide a detailed plan outlining the necessary upgrades. This allows you to make informed decisions about whether to implement changes to maximize your returns.
We also collaborate with your CPA to ensure the accurate and timely filing of IRS Form 8908.
GATHERING
Your assigned Project Manager will work with you to gather the required documents for certifying your homes which consist of home plans and efficiency specifications.
Research
Our team of licensed inspectors will analyze your plans and specifications and schedule any required blower and duct tests (required for 2023+ homes only) covering all of these costs.
DELIVERY
We provide you 45L certificates for each home or unit, a completed 8908 IRS form, and collaborate with your CPA firm to ensure an accurate and timely filing.
About Us
Credit Refund Experts is a team of project managers who work with builders during the 45L and 179D qualification process. We are partnered with Ascendancy, Inc, who is a national provider of Home Energy Rating Systems (HERS) services for building code compliance, the 45L Energy Efficient Home Credit, and local energy rebate programs.
With the combined knowledge and experience of HERS Raters, CPAs, and attorneys, Ascendancy provides complete solutions tailored for each client. We have certified over $1 million doors for the 45L program.
Our goal is to make the qualification process seamless for the builder. One of our dedicated project managers will be assigned to you serving as the point person to minimize communications and efforts on your end.
When efficiency ratings fail to meet the 45L or 179D program requirements, we provide an upgrade analysis so that builders fully understand the return on investment in the form of tax credits for doing required upgrades.
Certifying homes and buildings under the 45L and 179D programs is a complex process with many nuances. Our mission is to maximize the number of certified structures for our clients while fully adhering to 45L program guidelines. To achieve this, we go beyond automated assessments, dedicating extra time to meticulous manual analysis that compliments our government-approved rating software.
OUR STRENGTHS
- Credit Refund Experts approaches every project thoughtfully with an unparalleled team of experts.
- The Credit Refund Experts team has the combined expertise and best practices, and has performed ratings for homebuilders of all sizes including some of our country’s largest residential builders.
- All IECC Energy Finals are reviewed and signed by a RESNET-certified HERS rater.
- We strongly advocate for our clients and are tenacious in providing experienced, thorough, and insightful inspections.
- Credit Refund Experts performs free preliminary analyses for all service lines while capping fees to guarantee outstanding value.
- We provide frequent updates and maintain open communication so that inspections proceed efficiently, build-times are prioritized, and delays are minimized.
- Our inspections are complete and thorough by providing all necessary compliance as well as tax credits and local energy rebate programs.
RESNET ACCREDITED PROVIDER
ENERGY STAR PARTNER
DOE ZERO ENERGY READY HOME PARTNER
INDOOR AIR PLUS
45L - FAQs
Construction companies can collect tax credits going back three years of homes built through the 45L program. The deadline to file depends on when the builder filed their taxes for that year.
For example, in our current year 2025, a builder can collect the 45L tax credits for homes built in 2021 up until the date (in 2025) that they filed their 2021 taxes in 2022. So if the builder filed for an extension in 2022 for their 2021 taxes and filed on 10/15/2022, then they have until 10/15/2025 to file for their 2021 45L tax credits.
Residential Homes:
Prior to 2023, a builder can receive $2000 per home ( a 4 plex would be $8000, a duplex would be $4000), or up to $2,000 per apartment (up to 3 story buildings only).
For 2023+, construction companies can receive up to $5,000 per home ($10,000 for a duplex, $20,000 for a 4-plex), or $5,000 per apartment (no limit on building height).
Tax credits received in the current year of construction goes against what a builder will pay for taxes whether it’s quarterly or at the end of the current tax year.
They can receive up to $5000 per home in tax credits.
There are a few more requirements for 2023 including a blower test. Homes need to meet a certain requirement to pass inspection as well as earn the credit.
A builder can collect these credits for new homes built each year going forward through 2035.
Once our company has certified the builder’s homes for the 45L program, we will complete the IRS form 8908 for the builder for every year awarded (going back three years).
For tax credits awarded on previous years, the builder needs to file an amended federal income tax return using the 8908 form. They will then receive tax refunds from the IRS.
For 45L tax credits received in the current year, the builder will receive a credit for taxes owed.
The auditor will request the 45L certificates and addresses to the properties. The auditor will verify that there is in fact a residence at the address on the certificate (usually by using Google) then they approve the audit.
If there is additional information needed, the builder can reach our company and we will provide any additional information needed.
It takes the IRS typically 2-4 months to amend the returns and send the refund checks. If a builder has a direct deposit setup with the IRS, then the refund typically get deposited in 1-2 months.
