$2500 & $5000
45L Tax Credits
It pays to build a better, more high performance home! There are currently two options for homes built 1/1/2023 and beyond:
Option 1 – The ‘standard’ $2500 45L Tax Credit – Requires Energy Star Certification
In Massachusetts with the 2018 IECC and Stretch Code, this is not a big lift. Energy Star Certification takes some planning and has some additional administrative requirements. Your HVAC contractor needs to be familiar with the program, be Energy Star Certified, and complete the required documentation. We can help guide you through the process and understand what upgrades are needed.
Option 2 – The $5,000 45L Tax Credit for DOE Zero Energy Ready Certification
This option is definitely doable if you are participating in the Mass Save All-Electric Homes Incentive Program, especially in context of the MassSave <45 HERS $15k incentive. If you’re aiming for this $15k rebate, there is no reason not to go for the additional $5k tax credit. To learn more about the All-Electric Program and the requirements, click here.
What kinds of projects are eligible?
Single family and multi-family projects which are 5 stories or less must demonstrate a 50% reduction in heating/cooling and a 10% energy reduction from the envelope when compared to the 2006 IECC. The housing unit must be designed for occupancy with at least one bedroom, living room, and kitchen.
How can I get my project to qualify?
By building green. While many new construction and renovation projects don’t qualify as is, we can help you find a way to cross the finish line for these generous credits.
Who is eligible?
This tax credit can only be claimed by a qualified contractor who is the developer, builder, or homeowner. The home must be sold, leased, or rented by the contractor to take advantage of the credit. A homeowner who hires a contractor to renovate or build a home is entitled to the tax benefit as well.
Can I combine this with other incentive programs?
Absolutely! Combine these tax benefits with the utility sponsored incentives available in many states for significant savings.
Can remodeling projects qualify?
You bet, Section 45L includes “substantial renovation” within the new construction category.
What about projects I have previously completed?
This tax credit is retroactive to include projects completed in 2020, 2021 as well as being in effect for all of 2022. Projects completed during this time are eligible for the $2,000 tax credit. If you were a client of Home Energy Raters during this time, call us at 508-833-3100 to see if any of your past projects qualify.
How do I get this tax credit?
Projects must be certified by an independent verifier (Home Energy Raters) who is accredited by a rating network like the Residential Energy Services Network (RESNET) and approved by the IRS.