45L Tax Credits

For Green Building Residential Developments

If you’re a residential or low-rise multifamily property developer that has improved energy efficiency on your building/s in the past four years, there’s a good chance you qualify to receive a green building 45L tax credit of up to $2,000 per unit (not per building). Manufactured home producers that meet the 45L credit standards could qualify for $1,000 per unit.

An example: For 50 apartment units, condos, townhomes or single-family homes that meet the 45L credits performance standards, developers would earn a tax credit of $100,000.

You may claim 45L tax credits on 2013 tax returns and on amended returns for prior tax years, as long as qualified properties were sold or leased before December 31, 2013.

45L Tax Credit Standards

Multifamily projects (no more than three stories above grade) and single-family homes must achieve a 50% reduction in energy use as compared to the 2006 International Energy Conservation Code (IECC), with building envelope components making up one-fifth of the improvement. Manufactured homes must meet ENERGY STAR® standards and use 30% less energy than the 2006 IECC, with one-third of the reduction coming from envelope components.

45L Tax Credit Special Requirements

To claim the credit, a qualified, independent contractor or engineer using IRS-approved software must perform a detailed energy analysis that verifies the project’s green building elements.

How CTI Helps You Receive 45L Tax Credits

As an independent third-party firm with the software required by qualified auditors, we provide the verification, certification and documentation needed to claim the 45L tax credit and defend it against audit.

Ready to discover the green building incentives that are available to your business? Click here to connect with a Tax Navigator at CTI and receive a free, 30-minute consultation.

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