Resource for Residents: Understanding 45L and How to Earn the New Energy Efficient Home Tax Credit

For homebuilders, the new and improved Internal Revenue Code Section 45L New Energy Efficient Home tax credit (45L) under the IRA creates significant new incentives for new or substantially reconstructed energy-efficient homes. The IRA amended and extended 45L to increase the tax credit to up to $2,500 per unit for homes that meet ENERGY STAR certification and up to $5,000 for homes achieving the Department of Energy’s (DOE) Zero Energy Ready Home (ZERH) certification.

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