45L Tax Credit - extended and expanded. Get in the know.
Lots of excitement with the news that Sen Manchin weened some suckling dino fuel big money interests and finally let a climate bill go through. The Inflation Reduction Act contains some great stuff for our builder/owner clients. (or ‘Infiltration Reduction Act’ credit: Chris,BER)
Here is a quick high level of what you can get, and why you should push yourself to build a more high performance home.
Legacy - Homes completed in 2022 - ‘acquired’ in ‘22 will be eligible for the legacy 45L $2,000 credit. We will provide you with the required certificate as part of our FInal HERS Rating package showing where your project stands compared to the 50%+ savings requirements.
Homes ‘acquired’ in 2023 and beyond ….
Option 1 - The ‘standard’ 45L Tax Credit - $2500. Requires Energy Star Certification .
In MA with the 2018 IECC and Stretch Code, this is not a big lift. ES takes some planning, some additional administrative requirements. Your HVAC contractor needs to be familiar with the program, be Energy Star Certified, and complete the required documentation. We can help guide you through the process and understand what upgrades are needed.
Option 2 - $5,000 45L Tax Credit for DOE Zero Energy Ready Certification
THIS IS TOTALLY DOABLE , especially in context of the MassSave <45 HERS $15k rebate . If you’re aiming for this $15k rebate, there is NO REASON not to go for the additional $5k tax credit.
We have a great overview of the ZERH Certification requirements here. And of course, we can provide you with all the Rating and verification services needed to achieve this Certification . With that said, it is absolutely the responsibility of the builder to understand the program guidelines and requirements. With a sweet tax credit, your project will get a nice certificate , label and registry in the database as a verified truly high performance home. Moreover, as codes will be shifting in the next year or so in MA and the Northeast, upping your game now will give you a head start on required enhanced building energy performance.
Be in touch with any questions you have. Note that we are not tax experts and this is all new. Things may change. There are many more details to explore,,, such as multifamily tax credits etc.
Single Family and Multi Family 45L tax credit levels, PER UNIT :
Duplexes and town houses are treated as single family
