Leveraging the 45L Energy Efficient Home Credit

The energy efficient home credit has been extended through the end of 2016.

Multi-family developers take note—the 45L Energy Efficient Home Credit was extended for another two years as part of the Protecting Americans from Tax Hikes (PATH) Act of 2015, benefitting residential rental units leased through December 31, 2016. The credit is a $2,000 per unit federal tax credit for energy-efficient qualifying units leased by 2013. To qualify, units must meet certain defined energy efficiency standards, which were also updated as part of this legislation.

The credit can be a significant additional benefit for work you may already be doing to your new construction multi-family project or substantial rehab project.

If you are working on a new construction or substantial rehab multi-family project or have developed one in the past three or four years, your project may be a candidate to receive these credits (you can amend prior year tax returns to claim the credit). View this webinar recording to learn:

  • Energy efficient home credit eligibility requirements for a multifamily development
  • The process for qualifying your project
  • How the credit led to additional proceeds in multifamily developments by analyzing case studies

The basis for developing and supporting this tax credit is a detailed energy analysis that must be certified by a qualified third-party. This webinar discusses the details about determining the eligibility of, and obtaining certification of, a dwelling unit.

Don’t leave any credits on the table. Every residential developer should consider 45L as part of their tax strategy, contact our real estate industry team for more details.