45L Tax Credits in California
45L Tax Credit Services in California | 5 Star Energy
Are you a builder or a project developer who consistently builds high-performance, energy-efficient homes? If so, you may be eligible for the 45L tax credit. The credit is available for both new and existing homes and can be applied for each dwelling unit that meets the criteria outlined in the legislation. Don’t let this valuable tax credit go to waste, 5 Star Energy can help you take advantage of this tax relief. If you want to learn more about the 45L tax credit and how it can benefit your business, contact us today at (530) 441-2722.
Building energy-efficient homes is not only good for the environment, but it can also lead to big savings on your federal taxes. The 45L tax credit was created to incentivize builders and developers to continue building homes that use less energy and generate fewer emissions. This helps to reduce our reliance on fossil fuels, improve the quality of the air we breathe, and lower our carbon footprint. If you are not sure if your project is eligible for the 45L tax credit, our team of experts can help you determine if you meet the requirements. We can also assist you in claiming the credit by preparing and filing the necessary paperwork.
How Much is the 45L Tax Credit?
The 45L tax credit is worth up to $2,000 per dwelling unit. The credit amount is based on the energy savings of the home compared to a reference home that meets the minimum requirements of the Energy Policy Act of 2005. The 45L tax rebate is available for both new and existing homes.
Building Types That Qualify for the 45L Tax Credit
Below is a quick overview of the types of buildings that qualify for the 45L tax credit.
- Residential Buildings
- Single and Multi-Family Homes
- Affordable Housing
- Assisted Living Facilities
- Condominium Developments
- Student Housing Facilities
- Reconstructed/Rehabilitated Homes
How to Qualify for the 45L Tax Credit
Here are some of the key requirements that your project must meet to qualify for the 45L tax credit:
- The structure must be less than three stories tall
- Each dwelling unit must provide an annual energy savings of at least 50% when compared to a reference home
- The building envelope must contribute at least 1/5 of the total required 50% energy reduction
- The structure is sold or leased as a residential dwelling unit
It’s important to take note that the $2000 45L rebate is applicable per dwelling unit and not per building. This means that if you have 100 units in a single building, you can receive up to $200,000 in 45L tax credits.
How 5 Star Energy Can Help
At 5 Star Energy, we have a team of certified energy consultants that can help you take advantage of the 45L tax credit. We will work with you to determine if your project is eligible and help you navigate the process of claiming the credit.
Here’s what you can expect when you partner with us:
- A free initial consultation to review your project and discuss your goals
- An in-depth review of your building plans and blueprints
- If necessary, interviewing of key personnel involved in the project
- Conducting on-site testing, inspection, and analysis
- Using the latest computerized modeling software to generate energy usage reports
- Preparing compliance certificates and other relevant documentation
- Collaborating with your tax consultant to file for the credit
- Providing ongoing support and advice to make sure that you maximize your 45L tax credit
The 45L tax credit can also be applied retroactively for projects that have already been completed. If you have constructed a qualified building in the last three years, you may still be eligible to receive the 45L credit. Our team at 5 Star Energy can help you determine if your project qualifies and assist you with all the necessary testing and documentation.
Maximize Your 45L Tax Credit With 5 Star Energy
At 5 Star Energy, we will leave no stone unturned to make sure that you maximize your 45L tax credit. We have a proven track record of helping our clients receive the full rebate that they are entitled to by ensuring that every nook and cranny of their project meets or even exceeds the eligibility requirements. If you are planning to construct a new building or retrofit an existing one, contact us at (530) 441-2722 today to see how our team at 5 Star Energy can help you take full advantage of the 45L tax credit.