Builders and developers, have you built a home or multi-family low-rise project in the last three years? If so you may qualify for the 45L federal tax credit. Each home or dwelling meets the US Internal Revenue Code §45L. building construction standards and application requirements are eligible for up to $2000.00 in tax credits per dwelling constructed. Due to the advancements in many of the state-building and energy codes, most developers are already constructing a standard that would already meet the 45L tax credit. ​

A HERS Rater acts as the “Eligible Certifier” for the project, and the HERS rater creates the 45L Certificate documentation the project owner needs to claim the tax credit. HERS Raters typically charge a fee per dwelling unit to provide the certified 45L documentation.

Can builders and developers retroactively claim the tax credit?

Yes! The 45L tax credit can still be retroactively claimed on projects that have already finished construction. These already completed single-family homes or low-rise multi-family must have been rented or sold by December 31, 2021, and finished construction by December 31, 2018.

What are the requirements for the dwelling or home?

1. Constructed to at least 50% more efficient than the 2006 IECC benchmark. Efficiency compliance must be verified with DOE approved 45L software.

2. Energy features or improvements must be verified by a qualified HERS Rater (Eligible Certifier)

3. Each property must have been sold or leased prior to January 1, 2022

What Types of Projects Qualify for the Tax Credit?

1. Single-family homes

2. Multi-family apartment and condominium projects 3-stories above grade and less

3. Additional Dwelling Units (ADUs)

4. Assisted living facilities & student housing (low-rise)

5. Substantial building reconstruction or rehabilitation

If you have any finished projects from 12/31/2018 to 12/31/2021 and are curious if you qualify for the $2000.00 per dwelling tax credit, give the energy professionals and HERS raters at NWECP a call!