The 45L Tax Credit for Builders and Contractors
Section 45L is a Federal Tax Credit that offers general contractors/builders a means to offset the costs associated with building energy-efficient single-family or multifamily properties. It rewards builders of energy-efficient residential construction by providing a tax credit to buildings that meet certain energy efficiency requirements.
The 45L Tax Credit (part of the Inflation Reduction Act) is for new construction or substantially renovated single-family detached, duplexes, townhomes, apartments, and condominiums. The credit provides a dollar-for-dollar offset against taxes owed or paid in the tax year in which the eligible property is sold or leased.
Single-family homes are eligible for a $2,500 credit for obtaining ENERGY STAR for Homes certification and a $5,000 credit for a DOE Zero Energy Ready Home certification. Manufactured homes are eligible for the $2,500 credit as well for receiving the ENERGY STAR Manufactured Homes certification.
Multifamily homes are eligible for the 45L Tax Credit as well.
The 45L Federal Tax Credit is a per dwelling unit credit for each new energy-efficient home that is built and occupied during the tax year. The credit can be transferred to an owner or carried forward for up to 20 years.
Multifamily homes are eligible for a $500 credit for ENERGY STAR Multifamily New Construction certification, a $1,000 credit for DOE Zero Energy Ready Home certification, a $2,500 credit for ENERGY STAR Multifamily New Construction certification with prevailing wage requirements, and a $5,000 credit for DOE Zero Energy Ready Home certification with prevailing wage requirements. Our Inflation Reduction Act FAQ page provides more details
When you partner with Green Insight, our simple 3 Phase process helps us ensure you meet the criteria to take advantage of the IRS tax credits available to you.
A complimentary review of the drawings or property which includes guidance to meet the requirements of the 45L Tax Credit and estimated incentive.
Low-cost modeling of worst-case units with IRS-approved software and exploration of reducing construction costs.
Cost estimate to provide Green Building Program Certification and testing requirements during construction.
This applies to residential projects seeking 45L (including multi-family of any height). For commercial buildings, we can refer you to a trusted partner who can help you with that.
How We Help
We can help you achieve your mission in building sustainably and reducing your carbon footprint in a lot of ways. From helping you with your HERS rating, LEED for Homes certification, and ENERGY STAR home status to consulting with you about the sustainability of your project and other ways we can help you be compliant with local and federal energy codes, Green Insight is passionate about partnering with you.
We offer HERS Ratings (Home Energy Rating System ratings), which are the industry standard for recognizing a home’s energy consumption.
Energy Code Compliance
We offer a variety of testing and inspections aimed at code compliance no matter your compliance pathway.
LEED for Homes
LEED for Homes certification is not “easy,” as anything worth doing never is, but we are able to simplify as much as possible.
Enterprise Green Communities
Enterprise Green Communities is improving the health and well-being of low-income people by transforming the quality of affordable housing in America.
ENERGY STAR for Homes
Energy Star Certification for new homes is a powerful way to distinguish your home(s) from the competition.
Who We Help
Check out our portfolio to see the wide range of clients we have partnered with through the years to create energy-efficient and sustainable structures. We view client relationships as a partnership that results in buildings that are better for their residents and the environment.
What our clients are saying
“Green Insight is always available on-site and in real-time. Their ability to turn things around and keep a project on track distinguishes GI from competitors. They are also creative and willing to roll with the punches. In my world, things don’t always work out perfectly but the team at Green Insight is always open to finding creative solutions to figure out the most timely, cost-efficient way to resolve issues.”
Project Manager, Pavilion Construction
“Green Insight’s team is responsive, available, and provides a tremendous sense of security. We recently had a project where the goalposts changed quickly and often during the approval process. We were able to get our project approved, but I honestly don’t know how that would have gone if we didn’t have the backup and knowledge that Green Insight provided.”
Director of Development, Landmark Homes
“When it comes to green energy consultants, Green Insight takes the stress away like no other. They bring an unbeatable combination of value-engineering, industry knowledge, and out-of-the-box creativity for solutions that work. What I value most about working with Green Insight is the relationship – which is more like a partnership that has been one of the key drivers in our success. They take the stress away. And frankly, this has been the best relationship that I’ve had with somebody in this business.”
Owner, Trailhead Homes
Where We Work
Green Insight serves clients throughout New Mexico, Colorado, Arizona, West Texas, the entire Mountain West, and beyond. Over the years we’ve grown to service many cities in the mountain states and southwest and our primary service areas are listed below. Our footprint has quickly expanded to other cities and states within the U.S. and internationally. Our continued growth is powered by word-of-mouth marketing from hundreds of happy clients who love our dedication to detail and customer service.
Green Insight has completed or is currently working on projects in the following states and countries: