The guidelines were never made permanent so there are two iterations you should consider. The first one should be used if you are filing, or adjusting, tax returns for 2019-2022. The second begins in 2023. Read on for details.
The §45L Tax Credit for 2019-2022 tax returns is potentially worth up to $2,000 for each qualified new energy efficient unit acquired for use as a residence after December 31, 2005, and before January 1, 2023. The people who would benefit the most are eligible contractors of multi-resident buildings no taller than three stories. However, single-family homes, duplexes and townhomes are also eligible.
If you believe a building qualifies, it must be inspected by an eligible certifier, like Scarpello Consulting. If the building passes, we will provide you with the official certification to be kept on file. Then you may apply the tax credit to the return.
The §45L Tax Credit beginning in 2023 has slightly different criteria. You will still need to be an eligible contractor, but multi-residence buildings higher than three stories should also qualify. As before, some newly constructed single-family homes, townhomes and duplexes can qualify as well.
The units must pass either the EnergyStar certification process for new construction or a higher class certification called Zero Energy Ready. The credit also varies from $500 to $5,000 per unit depending on which certification is met and some other requirements depending on property type.