The §45L credit for energy-efficient housing is a federal incentive designed to reward builders and developers who produce residential units that meet certain energy-efficient standards, such as Energy Star or the DOE's Zero Energy Ready Home (ZERH) standards. Properties placed in service after 2022 can qualify for significant per-unit credits, with compliance to prevailing wage (Davis-Bacon) requirements unlocking the highest credit amounts.
Engineered Tax Services (ETS) simplifies the process by offering a complimentary initial design review to assess eligibility. If you move forward, ETS performs a full certification study starting in the design phase, conducting energy modeling, guiding system selection, and overseeing two critical site visits (one before sheetrock, one at completion). ETS then provides the necessary certifications and detailed reports so that you or the entity funding construction can confidently claim these credits on a per-unit basis, ensuring your projects are maximally beneficial from a tax perspective.
45L Credit & ETS Certification: Key Facts
- Credit Purpose: A federal incentive rewarding builders and developers for producing energy-efficient residential units.
- Qualification: Units placed in service after 2022 qualify when they achieve benchmarks like Energy Star or the DOE's ZERH standards.
- Max Credit: Complying with prevailing wage (Davis-Bacon) requirements unlocks the highest per-unit credit amounts.
- Retroactive Claims: Eligible projects completed in the past may allow you to claim missed credits retroactively by amending prior returns.
- ETS Initial Service: Offers a complimentary initial design review to assess project eligibility.
- ETS Certification Process: ETS performs energy modeling, guides system selection, and oversees two critical site visits (pre-sheetrock and final completion) to provide the necessary certifications and detailed reports.
