How to Achieve the 45L Home Energy Efficient Tax Credit

We have outlined some very important items developers should take into consideration in order to achieve the energy efficient standards for the 45L tax credit. Of course, there are a lot of factors including climate zone that are measured but if a developer pays attention to these items, they will be in much better shape. Keep in mind that they are not required in order for a unit to pass, but they do help considerably if employed.

New Construction

  • Whole house fan for cooling strategy: This can also be a fan-only fresh air option on a wall unit air conditioner or PTAC
  • Mechanical ventilation for indoor air quality: This a great idea for homes, townhouses and apartments larger than 1500 square feet.
  • All ducts & HVAC equipment should be inside conditions space and not run in the attic, crawl space or garage.
  • Wall insulation of R-19 or better for dwellings outside the Deep South. Rigid foam board or insulated sheathing is also beneficial.
  • Foundation wall insulation: R-7 around the perimeter is preferred but under slab insulation works well also.
  • Quality Windows: Energy Star windows are a bare minimum. U-values are important in northern states and solar heat gain coefficients (SHGC) are better in the south.

Rehabs

  • Wall insulation of R-19 or better for dwellings outside of the Deep South. Rigid foam board or insulated sheathing is also beneficial.
  • HVAC Equipment. If constraints don’t allow exterior walls to be insulated to R-19, then the efficiency of the HVAC equipment is vital. At least SEER 14 for A/Cs and 95% AFUE for heating is recommended.
  • Ventilation. When replacing PTACs, VTACs, wall unit A/Cs and other similar equipment, choose those that have a fan-only fresh air option.
  • Quality Windows. Energy Star windows are a bare minimum. U-values are important in northern states and solar heat gain coefficients (SHGC) are better in the south.
  • Attic Insulation. Northern climates should have additional attic insulation installed to R-50 and southern states should have at least R-38.

Have a project you would like to have evaluated? Contact us here.

Author

Engineered Tax Services

Engineered Tax Services

Recent Posts

ertc

The Ins and Outs of the ERTC

The Employee Retention Tax Credit (ERTC) is a tax credit offered by the federal government to assist businesses in retaining their employees during economic hardships. This credit was introduced in 2020 as a response to the COVID-19 pandemic and has been extended until the last quarter of 2021.

Read More »

Cost Segregation: A Tax Strategy for Office Building Owners

As an office building owner, navigating the complex world of taxes can be a daunting task. With commercial properties subject to a variety of tax rules and regulations, it’s easy to get lost in the details and lose sight of your bottom line. That’s where cost segregation comes in.

Read More »
International Women's Day

Women Leading the Way: Lessons in Resilience and Success

Introduction As we enter Women’s History Month and celebrate International Women’s Day on March 8th, Engineered Advisory is proud to recognize the many phenomenal women who are part of our community. As a predominantly women-led organization, we value diversity in leadership. From executives to team members, we firmly believe that a diverse leadership team fosters

Read More »

Contact Us