Increase cash flow. Benefit from the 45L energy tax credit.

Increase Cash Flow with the 45L Tax Credit
The Section 45L New Energy Efficient Home Credit is a tax credit for residential properties that meet certain energy efficiency standards.

$2,000 per qualifying unit for single-family and multifamily (three stories or less, above grade) for properties first occupied prior to 1/1/2023.

For properties placed in service between 1/1/2023 and 12/31/2032, the rate increased to as high as $5,000 per unit and the three-story height limitation is eliminated, however, properties must meet increased efficiency standards.

How the 45L Tax Credit Can Benefit You
Starting in 2023, these 45L residential credit enhancements apply:

• Base Credit Rate Increase
  Single family & manufactured homes: $2,500/unit
  Multifamily homes: $500/unit
  Bonus credit of $2,500/unit for projects meeting prevailing wage and apprenticeship requirements
• Enhanced Energy Efficiency Incentives
  Additional credit for projects certified under the Zero Energy Ready Home Program (ZERH) for both single and multifamily homes
• Height Limitations Removed
  No limits on the height of the qualifying project
• Enhancements to Affordable Housing Projects
  Qualified low-income housing tax credit (LIHTC) projects can claim the 45L credit without a reduction in the project’s basis

Partner with Eide Bailly to Maximize Your Tax Savings
Eide Bailly is the number one accounting firm in the energy incentives space. We have nationally recognized professional engineers, energy modelers and architects, entirely in-house, with expertise to help you maximize your 45L tax credit.

These are a few outcomes from our energy efficiency incentives work with clients:

Single-Family Home Developer
We helped one client claiming 45L tax credit for homes they built in prior years. We reviewed those homes first occupied in an open tax year and were able to identify energy-efficient components utilized for the envelope as well as qualifying mechanical systems using 16 SEER air conditioning and 96.1% efficient furnaces. We found 406 units that met the energy efficiency standards, resulting in a credit of $812,000 (406 units x $2,000 per unit). >> Apartment Complex A new construction of 20+ apartment buildings (518 units) utilizing high-performing heat pump heating and cooling systems qualified for 45L. In total, we identified over $1 million in tax credits for the client.

Apartment Complex
A new construction of 20+ apartment buildings (518 units) utilizing high-performing heat pump heating and cooling systems qualified for 45L. In total, we identified over $1 million in tax credits for the client.

Townhome Complex
The complex was comprised of 56 units and included energy-efficient mechanical systems and building envelopes, including insulated glazing. By gathering the necessary information and completing the certification, the client received over $112,000 in credits on their current-year tax return.

Ready to start increasing your cash flow?
Partner with a trusted firm to help you benefit from the 45L tax credit.