When Congress enacted the Protecting Americans from Tax Hikes (PATH) Act of 2015, which made research and development (R&D) tax credits permanent, the legislation also extended the New Energy Efficient Home Tax Credit under Code Section 45L through 2016.
Under the provisions of the 45L tax credit, eligible contractors may request up to a $2,000 credit for new energy-efficient systems and installations performed between August 5, 2005 and December 31, 2016. The 45L tax credit can be claimed retroactively for all residential and apartment buildings completed within the last four years, and any unused credit may be carried forward for up to 20 years.
To claim the 45L tax credit, the property must meet the following criteria:
Eligible contractors use Form 8908 to claim a credit for each qualified energy efficient home sold during the year. The first step toward applying for the 45L credit is a detailed energy analysis that must be certified and documented by a third-party licensed professional. Additionally, homeowners should acquire an energy efficiency overview of their current energy consumption before having a tax credit analysis to see if they qualify for the 45L tax credit.
Tax Point Advisors works with CPA firms and business owners to coordinate the energy analysis for the 45L tax credit. We offer in-house engineering capabilities and the tax expertise to help you apply and qualify for this valuable tax credit.
To learn more about tax benefits from the 45L Energy Efficient Home Tax Credit, simply fill out the form on this page and a member of our team will be in touch with you. Or, you may call us at (800) 260-4138 nationwide.