The 45L Tax Credit is a tax relief issued by the government. The tax credit is intended to promote the construction of residential properties that are designed to consume less energy and meet certain energy efficiency standards. These standards include requirements for heating, cooling, water heating, and building envelope components such as insulation, windows, and doors. Single-family homes, multi-family homes, townhomes, condominiums, apartment complexes are all eligible properties. Additionally, student housing and assisted living facilities constructed during 2023 and after are also eligible. Newly built homes are not the only residential properties that qualify for eligibility. Additionally eligible for consideration are properties that have undergone substantial remodeling or upgrades.

45L tax credit services involve assisting builders and developers in identifying properties that qualify for the credit, verifying that they meet the necessary energy efficiency standards, and helping with the documentation required to claim the credit. These services can be provided by accounting firms, tax consultants, or energy efficiency experts who are familiar with the requirements of the 45L tax credit program. Their expertise can help ensure that the credit is claimed accurately and in compliance with the program's regulations. if you want guidance regarding 45L Tax Credit services then please visit our location like Hoffman Estates, Palatine, Arlington Heights, Rolling Meadows, Elk Grove Village, Roselle, Mount Prospect, Des Plaines, Elgin, Barrington, Chicago, Schaumburg.

To be eligible to claim the tax credit, the taxpayer should meet the following criteria:

Before 2023

To qualify, residential buildings must use 50% less energy for heating and cooling than a comparable structure that follows the guidelines of the 2006 International Energy Conservation Code. Furthermore, the building envelope should account for at least 20% of all energy-saving changes. As well as a Certification from a recognized independent certifier connected to a rating network such as the Residential Energy Services Network.

2023 and Beyond

The property must meet the requirements listed by the Department of Energy’s Zero Energy Ready Homes and Energy Star. The property must also meet the requirements of the Environment Protection Agency. Lastly, contractors must abide by the prevailing wage requirements.

The tax credit amount is $2,000 per dwelling unit for eligible homes constructed or substantially renovated after August 8, 2005 and before December 31, 2021.

Properties that are acquired after December 31, 2022 can claim a tax credit amount of up to $5,000 per dwelling unit. However, the amount of credit can change depending on how many requirements it meets the property meets. The credit will change based on the requirements of Zero Energy Ready Homes, Energy Star, and prevailing wages.

What is the application process?

Please click this button and we can begin applying you for this tax credit and assist you into claiming your tax credit.

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