Claiming Section 45L: Energy Efficient Home Credit

For eligible builders, developers, and contractors who build or renovate energy-efficient homes and multi-family properties.

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The Inflation Reduction Act (IRA) of 2022 signaled a push to incentivize and reward companies for climate and green energy-related projects. The IRA funds over a total of $369 billion for introduced programs, making it the most ambitious climate and green energy incentives program to date. A new production tax credit that was introduced with the IRA is the Section 45L Energy Efficient Home Credit.

45L Tax Credit History

Originally introduced by the Energy Policy Act of 2005, and taking effect January 1, 2006, the 45L Tax Credit was created to incentivize the development of energy-efficient residential single-family and multi-family housing. Prior to January 1, 2023 (during eligible claim periods) the tax credit is a potential $2,000 per unit or per home. In 2022 with the passing of the Inflation Reduction Act, the tax credit was increased to a potential $5,000 per unit or per home. Currently, the 45L Tax Credit can be claimed through Calendar Year 2032.

Who is eligible?

  • Builders of Single-Family Homes and Multi-Family Housing Communities
  • Eligible Contractors who have equity during the construction process
  • Developers of Residential Real Estate (both single-family and multi-family)

Eligible buildings may include:

Eligible buildings for the 45L tax credit

These are not complete lists of eligible buildings. Please contact us for a free consultation with one of our experts to answer any questions and identify all opportunities.

Claiming periods

The Section 45L Energy Efficient Home Credit can be retroactively claimed for up to 3 previous open tax years, and ultimately requires Form 8908 to be claimed on an original tax return or Form 3800 for an amended tax year return. Our Ayming team will work hand in hand with your team to ensure your credits are properly claimed.


Residential Housing

Timing is of the essence!

Section 45L involves several significant contingencies which contribute to the complexity of claiming the credit. Ayming's in-house experts will assist you with maximizing the tax credits your firm is entitled to prior to breaking ground on your project, and post substantial completion.

Maximize your benefit by hiring an expert

We partner with your business and advisors to provide access to the maximum government incentives. Our team of experts take the time to understand your business in order to align your company to all available federal and state credits and/or grants. Our industry-based expertise and successful track record offer peace of mind knowing you have the highest chance of being approved and receiving the maximum benefit on investment possible.