Section 45 L Tax Credit

The Emergency Economic Stabilization Act of 2008 extended the Energy Efficient Home Credit which offers a tax credit of $2,000 per dwelling unit to developers of energy efficient buildings completed after August 8, 2005.

Eligible Apartment Buildings & Condos

A dwelling unit should provide a level of heating and cooling energy consumption that is significantly less than certain 2004 energy standards. Based on current construction trends, many developments already exceed these standards. Given that current energy codes have evolved tremendously over the past five years, many developers are already building to specifications that would meet the criteria for this credit. Additionally, if you have developed an apartment complex in the past, there is still an opportunity to retroactively claim any missed tax credits, as long as you amend your return before the three year federal statute of limitations.

Ideal Candidates

All apartment buildings and residential condominium developments completed on or after August 8, 2005 are worth assessing for potential energy tax credits. Eligible construction also includes substantial reconstruction and rehabilitation.

The Process

The basis for developing and supporting this tax credit is a detailed energy analysis that must be certified by a qualified third-party. Our multi-disciplinary team of engineers and tax experts will ensure that you obtain the maximum tax credits and provide all the documentation necessary to sustain an IRS audit.