Recommended
More Related Content
What's hot
What's hot (18)
Similar to Energy Policy Act Section 45L Tax Credit Guide
Similar to Energy Policy Act Section 45L Tax Credit Guide (20)
Recently uploaded
Recently uploaded (20)
Energy Policy Act Section 45L Tax Credit Guide
- 1. John J. Schultz Energy Consultant RESNET/HERS Certified Rater Stevens Point, Wisconsin SchultzEnergyConsulting.com John.Schultz@schultzec.com
- 2. Energy Policy Act of 2005 IRC Section 45L Residential & Multi-Residential Buildings For New Construction and Retrofits
- 3. Qualifying Dates “substantially completed” 1/1/2012 to 12/31/2016 and “leased or sold” 1/1/2012 to 12/31/2016 *the 3-year tax return amendment window may reduce owners qualifying ability . * The 45L tax credit may be extended beyond 2016
- 4. Qualified Owners Individuals, Trusts, Partnerships, and Corporations Non-Profits and Governmental Units are ineligible
- 5. Tax Credit Amount Provides for a Tax Credit of $2,000 per dwelling unit Apartment Building w/ 50 Units = $100,000 Credit
- 6. Dwelling Unit “single unit providing complete independent living, including permanent provisions for living, sleeping, eating, cooking, and sanitation that is not more than three stories in height” Dwellings Units can be Homes, Apartments, Senior Living Facilities, Condominiums
- 7. Provisions Tax Credits reduce the income tax you pay (~triple the effect of a tax deduction) and may also lower the tax rate
- 8. Provisions 45L Tax Credit is all-or-nothing for energy efficient HVAC & Envelope
- 9. Provisions 45L Tax Credit of $2,000/Dwelling Unit must meet both (2) components
- 10. Energy Efficiency Components 1. Heating & Cooling energy usage 50% below the 2006 IECC baseline 2. Building Envelope accounts for at least 10% of the 50%
- 11. Certification Requirements 1. Third-Party RESNET Rater 2. Energy Modeling 3. On-site Inspection/Testing 4. RESNET Certified Reports
- 12. How to take the Credit Credits must be taken in the tax year the building was leased or sold Form 8908 - Energy Efficient Home Credit 45L is a Section 38 General Business Credit
- 13. How to take the Credit • 1-Year carry back • 20-Year carry forward • 3-Year amended return
- 14. Paper Reduction Act Nothing is submitted with your tax return other than IRS Form 8908 Keep the certification and calcs on-file, if audited
- 15. What We Need Floor, Elevation & Section Plans Window & Door Schedules Mechanical Specs Inspect the Building
- 16. Things to Know • Free Analysis • Written Fee Proposal • Reduces Building Basis • No fee if no tax credit