The 45L tax credit allows taxpayers to claim potentially significant credits for the construction of new energy-efficient homes. The tax credit was retroactively extended from December 31, 2017 to December 31, 2020 by H.R. 1865, Further Consolidated Appropriations Act, at the end of 2019.
Real estate developers can claim $2,000 per dwelling or residential unit on qualifying properties. To be eligible, properties must meet the following qualifications:
• Properties must be new construction located in the United States.
• Each dwelling or residential unit must have a projected annual heating and cooling cost that is 50% below the annual energy consumption level of a comparable dwelling unit. This can be done through including energy-efficient roofs, windows, doors, insulation, air conditioners, and other energy-efficient property.
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