45L Tax Credits

At JR Tax Advisory Group, we are committed to helping you capitalize on the benefits of sustainable building practices. The 45L Tax Credit is a powerful incentive designed to reward developers and homebuilders who invest in energy-efficient residential properties. This federal tax credit offers significant financial benefits, providing up to $2,000 per qualifying dwelling unit.

What is the 45L Tax Credit?

The 45L Tax Credit, originally made effective in 2006, was extended through recent tax legislation to encourage the construction of energy-efficient homes and apartments. The credit applies to residential developments that meet specific energy efficiency standards, resulting in lower energy consumption compared to national benchmarks.

To qualify, a dwelling unit must achieve at least 50% energy savings for heating and cooling compared to the 2006 International Energy Conservation Code (IECC) standards. Many modern residential developments already meet or exceed these requirements, making the 45L Tax Credit an accessible opportunity for a wide range of projects.

Is Your Project Eligible?

The 45L Tax Credit is available for various types of residential properties, including:

If your development meets the energy efficiency criteria, you could be eligible for substantial tax savings. Even if your project was completed within the last four years, you can still retroactively claim the 45L Tax Credit if it was not previously claimed on your tax returns.

How We Can Help?

Navigating the complexities of the 45L Tax Credit can be daunting, but with JR Tax Advisory Group, you have a team of experts dedicated to maximizing your savings. Here’s how we ensure you get every dollar you deserve:

Free Initial Evaluation

Our no-cost assessment guarantees you won’t spend a dime until we’ve confirmed your eligibility.

Energy Modeling Analysis

Using IRS-approved software, we meticulously model your project to meet—and exceed—efficiency standards.

On-Site Inspection and Testing

Upon successful energy modeling results, we conduct thorough on-site inspections and testing to verify compliance.

Tax Certification Issuance

We issue official tax certifications for each qualifying unit, allowing you to claim your tax credits confidently.

Coordination with Your Tax Professionals

We work closely with your CPA or tax advisor to ensure all necessary documentation and processes are in place for seamless tax credit claims.