IRS Releases Updated Guidance on 45L Tax Credit for Energy-Efficient Homes

Tax Reform
Contact: J.P. Delmore
AVP, Government Affairs
(202) 266-8412

The Internal Revenue Service has released updated guidance on the new energy-efficient home credit under section 45L of the Internal Revenue Code, as amended by the Inflation Reduction Act of 2022.

The 45L tax credit is allowed to an eligible contractor that constructs a home, including multifamily rentals, that meets the energy savings requirements of the tax credit. The applicable amount of the credit is contingent on which set of energy saving requirements the home meets, and is $500, $1,000, $2,500 or $5,000.

The energy saving requirements of the 45L tax credit incorporate certain ENERGY STAR program requirements and certain zero-energy ready home program requirements.

View the IRS notice on the 45L tax credit.

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