Collect Tax Credit Per Dwelling Unit
Builders and Developers can collect $2,000 of tax credit for each new dwelling unit per Section 45L. Most California builders and developers already qualify due to the CA Energy Efficient Standards already in place.
On December 18, 2015, President Obama signed the extension of several expired tax provisions. One of the extensions included the construction tax credit for energy efficient new homes and/or dwelling units. Each home or dwelling unit that exceeded the heating and cooling 2006 IECC energy standards by 50% in 2015 and 2016 can receive a $2,000 tax credit. This tax credit falls under Section 45L and is expected to save builders and/or developers millions of tax dollars for 2015 and 2016. Here are some key facts you need to know:
- Tax Credit applies to Single Family and/or Multi-Family units up to 3 stories including:
- Single Family Residence(s)
- Tract or Production Home(s)
- Residential Condominium(s)
- Apartment Building(s)
- Assisted Living Residence(s)
- Affordable Housing
- Substantial Reconstruction
- Student Housing
- You can collect for 2016 and retroactive for 2015 – 2013 (as long as you did not already collect). Tax credit can be claimed retroactively for up to three years.
- Builders and/or Developers must have tax basis in the home or dwellings to claim the credit (builder or developer must own and then sell, rent or lease).
- New home or dwelling must exceed the 2006 Edition of the International Energy Conservation Code (IECC) heating and cooling budgets by 50%
- Most California builders and/or developers already qualify due to stringent Title 24 part 6 Energy Efficient Standards already in place.
- Builder and/or Developer must have a detailed energy analysis that is certified by a qualified third-party (such as DuctTesters) and one of the only approved IRS Software: Energy Pro 4.7, Energy Pro 4.8, EnergyGauge USA Version 5.0, or REM/Rate v14.6.2 is used to generate the energy savings calculations.
- All energy efficient features must be verified by a certified and registered HERS (45L Eligible Certifier) rater (such as DuctTesters) for quality assurance.
You do not want to miss this opportunity to collect $2,000 of tax credit per unit. Our DuctTesters team will ensure that you obtain the maximum tax credits and provide all the official documentation necessary to sustain an IRS audit. We use the IRS approved software programs for the IRC Sec. 45L certification.
Many NV builders and developers can qualify too. Read more here.
Give DuctTesters – Alyssa Trebil (818) 517-6936 or Tamara Dias (209) 624-8945 – a call and they will get your company all the tax credits you qualify for.
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