The Energy Policy Act (EPACT)
45L Tax Credit
The Energy Policy Act (EPACT) 45L tax credits of $2000 per qualified residential unit are back!
What kinds of projects are eligible?
Single family and multi-family projects which are three 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 2018 and 2019 as well as being in effect for all of 2020. If you were a client of Home Energy Raters, LLC 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 who is accredited by a rating network like the Residential Energy Services Network (RESNET) and approved by the IRS.