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Federal Tax Incentives
45L Energy Efficient Tax Credits
Services
Claim up to $5,000 per unit for energy-efficient residential properties. Extended through 2032 under the Inflation Reduction Act.
Maximum Credit
$5,000/unit
With ZERH & prevailing wages
Extended Through
2032
IRA extension period
Properties Certified
50K+
Units successfully certified
Understanding the Credit
What is the 45L Tax Credit?
Section 45L of the Internal Revenue Code provides federal tax credits up to $5,000 per unit for builders, developers, and eligible contractors who construct or substantially renovate energy-efficient residential properties. The Inflation Reduction Act of 2022 has significantly enhanced these credits, extending the program through 2032 with expanded eligibility for ENERGY STAR and Zero Energy Ready Home (ZERH) certifications.
$2,500
ENERGY STAR
Certification
$5,000
ZERH with
Prevailing Wages
2032
Extended
Through
Who Can Claim the 45L Credit?
The 45L Tax Credit is available to eligible contractors who construct or substantially renovate energy-efficient residential properties. This includes:
Single-family home builders and developers
Multi-family property developers
Student housing developers
Assisted living facility developers
Credit Requirements
2023 Requirements
- ENERGY STAR or ZERH certification required
- Meet national and regional EPA requirements
- Prevailing wage requirements for maximum credits
- Independent certification verification
Our Process
We guide you through every step of claiming your 45L tax credits
Eligibility Assessment
Our experts evaluate your properties against current ENERGY STAR and ZERH certification requirements.
Certification Process
We guide you through the certification process with authorized independent certifiers and ensure compliance with all requirements.
Documentation & Filing
We prepare comprehensive certification packages with all necessary documentation to sustain the credit in case of IRS audit.
Project Timeline
Week 1-2
Initial Review
Week 2-4
Energy Modeling
Week 4-5
Certification
Compliance & Standards
Meeting Federal Requirements
We ensure your properties meet all federal energy efficiency standards and certification requirements.
ENERGY STAR Requirements
National Program Requirements
Meet EPA's national ENERGY STAR Residential New Construction Program requirements
Regional Standards
Comply with EPA's ENERGY STAR Reference Design for your climate zone
Third-Party Verification
Independent HERS rater or qualified certifier verification required
ZERH Requirements
DOE Zero Energy Ready Home
Meet all Department of Energy ZERH program requirements
Enhanced Performance
Achieve higher efficiency standards than ENERGY STAR
Prevailing Wage Compliance
Meet prevailing wage requirements for maximum $5,000 credit
Key Benefits of 45L Tax Credits
Discover how 45L tax credits can benefit your residential development projects
Enhanced Tax Credits for 2023
Up to $5,000 per unit for ZERH certification with prevailing wages, or $2,500 for ENERGY STAR certification.
Expanded Property Types
Now includes apartment complexes of any size, student housing, assisted living facilities, and single-family homes.
Dual Certification Paths
Choose between ENERGY STAR certification or Zero Energy Ready Home (ZERH) program to maximize your benefits.
LIHTC Compatible
Now possible to claim both 45L credits and Low-Income Housing Tax Credits on the same building.
Client Success Stories
See how we've helped developers maximize their tax benefits
The 45L tax credit program helped us save over $2M on our multi-family development project. The ETS team made the process seamless.
Michael Chen
Development Director
Pacific Residential Group
Pacific Residential Group
Working with ETS on our 45L certification was a game-changer. Their expertise in energy efficiency standards is unmatched.
Sarah Martinez
VP of Construction
Cornerstone Builders
Frequently Asked Questions
Get answers to common questions about 45L tax credits
What is the 45L tax credit?
Section 45L of the Internal Revenue Code allows developers, builders, and homeowners to claim tax credits for energy-efficient residential properties. Recently extended through 2032 under the Inflation Reduction Act, this credit applies to both newly constructed and substantially renovated properties.
What are the new credit amounts for 2023?
Single-family homes can receive $2,500 for ENERGY STAR or $5,000 for ZERH certification. Multifamily properties can earn $500-$2,500 for ENERGY STAR or $1,000-$5,000 for ZERH, with higher amounts available when meeting prevailing wage requirements.
What types of buildings qualify?
Eligible properties include single-family homes, townhomes, duplexes, apartment complexes (any size), student housing, assisted living facilities, and manufactured homes. For mixed-use properties, dwelling units and common areas must exceed 50% of the building's square footage.
What are the requirements?
Starting in 2023, properties must obtain either ENERGY STAR or ZERH certification and meet both national and regional EPA requirements. For multifamily properties, higher credit amounts are available when meeting prevailing wage requirements.
Ready to Claim Your Tax Credits?
Contact us today to learn how we can help you maximize your 45L tax credits
Nationwide Service
We Serve Clients Nationwide
Connect with your nearest ETS expert today to maximize your 45L tax credits.
Find Your Nearest Office
Our team of 45L tax credit specialists are strategically located throughout the United States, ensuring we can provide expert service no matter where your property is located.