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.

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Engineered Tax Services

Engineered Tax Services

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