45L Federal Tax Credit Extension – What You Need to Know in 2020

As you may have heard, the US House and Senate voted to approve a tax extender bill on December, 20th 2019. Included in that bill was an extension to the 45L Energy Efficient Homes Tax credit (section 129: Energy Efficient Homes Credit) which had previously expired on December, 31st 2017.

The extender bill contains a retroactive extension of the 45L tax credit beginning on January, 1st 2018 through December 31st, 2020. All homes closed during that period may now be eligible for the $2,000/home federal tax credit.

How do you capitalize on this extension? Great question!

All closed homes during the period from January 1st, 2018 – December, 31st 2019 are now retroactively eligible. All homes closed in the 2020 calendar year will also be eligible under this current extension.

To qualify we need to demonstrate that your homes’ heating and cooling energy loads are 50% more efficient than a comparable house built to the 2006 IECC AND that building envelope improvements account for at least ⅕ of the 50% energy savings. 

If these metrics are met then you’ll be eligible for a $2,000/home federal tax credit that you can use when filing your taxes.

Seem complicated? That’s where we come in.

Southern Energy Management can systematically analyze your closed homes during that period and provide you with all the documentation you’ll need to provide your tax/accounting teams to claim this credit.

This can be a very challenging credit to qualify for in our climate zones but if your HERS scores are in the low 60s or below then it’s worth a look. You could have thousands in unclaimed tax credits on the table.

Think your homes qualify? Contact us to find out.

Let Taylor, our green building specialist, know how we can help!

Ready to get started?

We’re happy to help find the program that’s right for you!

Request a Free Solar Evaluation

Primary Solar Form 2019 - Placeholders

  • This field is for validation purposes and should be left unchanged.

Let's Connect!

BES Primary Form