Hey ,
The Internal Revenue Service (IRS) recently provided an update that could benefit you or someone you know involved in the construction or substantial reconstruction of energy-efficient homes.
The IRS has issued Notice 2023-65, providing guidance on the new energy-efficient home credit under Section 45L, as amended by the Inflation Reduction Act (IRA).
This provision allows eligible contractors who construct or substantially reconstruct and rehabilitate qualified new energy-efficient homes to claim a tax
credit of up to $5,000 per home.
Eligibility Criteria
- Eligible contractors must construct or substantially reconstruct and rehabilitate a qualified new energy-efficient home in the United States.
- Contractors must own the home during construction, and the home must be sold or leased to a person for use as a residence.
Credit Amounts and Requirements
- For homes acquired in 2023 through 2032, the credit ranges from $500 to $5,000, depending on certification achieved, standards met, Energy Star
program requirements, Zero Energy Ready Home program requirements, and prevailing wage requirements (for multifamily dwelling units).
- Homes must participate in specific Energy Star programs and meet energy-saving requirements based on home type.
For detailed information on the
relevant Energy Star and Zero Energy Ready Home program requirements, please refer to the respective program
websites or consult with a tax professional like me.
If you need any help understanding these tax credits or more, call my office at
202-618-1297 or click the link below.
