45L Tax Credit

Earlier this year, the United States Congress voted to extend the Energy Efficient Home Credit, i.e. the 45L tax credit, to developers of energy efficient homes and apartment buildings. The credit is $1,000-$2,000 per dwelling unit for housing construction that is significantly more energy efficient than national energy standards. Given California’s aggressive building code, which often exceeds the national standard, MUP recommends all builders who meet the following eligibility criteria research claiming the credit.

Qualifications and Eligible Properties


How to claim credit

Homebuilders and developers can still claim the 45L tax credit retroactively if they did not claim them on previous tax returns. You will need to file an amended tax return to receive the credit, if eligible. For more information, the US Department of Energy, Energy STAR®, and the Internal Revenue Service provide guidance on qualifying for the tax credit.