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THIS IS THE LAST YEAR!!! - The 45L Tax Credit Expires 12/31/2016 and has NOT been renewed

"The Protecting Americans from Tax Hikes Act of 2015" (PATH) was passed by Congress and signed into law by President Obama December 18, 2015

The "Energy Efficient Home Credit" known in the IRS Tax Code as a 45L credit provides a tax credit for each qualifying new energy efficient home built by an eligible contractor. The tax credit  typically amounts to $2,000 per home and $1000 per manufactured home and is claimed using IRS FORM 8908.

Qualifying properties include apartments, condominiums, townhouses and single family homes three stories or less.  Eligible construction also includes substantial reconstruction and rehabilitation of existing homes.  The 45L tax credit may also be claimed retroactively if not claimed on previous tax returns.

See IRS Form 8908 http://www.irs.gov/pub/irs-pdf/f8908.pdf  and instructions  http://www.irs.gov/pub/irs-pdf/i8908.pdf

*** The 2016 version of Form 8908 has not yet been published by the IRS.  Please check back for updates.***

 Qualifying dwellings must meet the following criteria:

***The IRS defines a dwelling as a "single unit providing complete independent living facilities for one or more persons, including permanent provisions for living, sleeping, eating, cooking and sanitation."***

  • Must be located in the United States.
  • Construction must be substantially completed after August 8, 2005 and before December 31, 2016.
  • Construction must meet the statutory energy savings requirements of Code Section 45L(c). 
  • Must be acquired from the eligible contractor for use as a residence.

Types of projects that qualify for the Tax Credit: 

  • New Single Family Dwelling
  • New Condominiums
  • New Apartments
  • New College and University Apartment Units
  • Substantially reconstructed or rehabilitated Homes

Procedure to claim the 45L Tax Credit

Contact us so we we may provide you additional information with directions on how to submit your projects for review.  The initial review is free, without obligation.

 


 TaxCredit Vs. Tax Deduction - A tax credit is more valuable than a tax deduction

A tax credit lowers your taxes dollar for dollar. A deduction reduces your taxable income, so the value depends on your tax bracket.

FOR EXAMPLE:  If you're in the 25% bracket, a $1,000 tax deduction would lower your tax bill by just $250. But a $1,000 tax credit lowers your tax bill by the full $1,000 no matter which bracket you are in.  A tax credit is more powerful than a deduction.