{"id":60062,"date":"2023-09-27T18:19:35","date_gmt":"2023-09-28T01:19:35","guid":{"rendered":"https:\/\/lapost.us\/?p=60062"},"modified":"2023-09-27T18:19:35","modified_gmt":"2023-09-28T01:19:35","slug":"irs-builders-of-qualified-new-energy-efficient-homes-may-qualify-for-an-expanded-tax-credit-under-section-45l","status":"publish","type":"post","link":"https:\/\/lapost.us\/?p=60062","title":{"rendered":"IRS: Builders of qualified new energy efficient homes may qualify for an expanded tax credit under Section 45L"},"content":{"rendered":"<p>IR-2023-180, <strong>Sept. 27, 2023,<\/strong>\u00a0<strong>WASHINGTON, <\/strong>\u2014 The Internal Revenue Service issued <a href=\"https:\/\/www.irs.gov\/pub\/irs-drop\/n-23-65.pdf\">Notice 2023-65<\/a> today which provides guidance on the new energy efficient home credit as amended by the Inflation Reduction Act (IRA).<\/p>\n<p>The provision, as amended by the IRA, allows eligible contractors who construct or substantially reconstruct and rehabilitate qualified new energy efficient homes a tax credit of up to $5,000 per home. The actual amount of the credit depends on eligibility requirements such as the type of home, the home&#8217;s energy efficiency, and with respect to multifamily dwelling units, whether prevailing wage requirements are met.<\/p>\n<p>Individuals or entities looking to claim the credit should consult with a tax professional to determine whether and how they can claim the credit and determine whether the credit can be used with other tax incentives or Federal incentives.<\/p>\n<p><strong>Eligibility for eligible contractors<\/strong><\/p>\n<p>To qualify, eligible contractors must construct or substantially reconstruct and rehabilitate a qualified new energy efficient home located in the United States. They also must own the home and have a basis in it during the construction, and they must sell or lease the home to a person for use as a residence.<\/p>\n<p><strong>Requirements and credit amounts for 2023 and after<\/strong><\/p>\n<p>Homes must be eligible to participate in certain Energy Star programs and meet applicable energy saving requirements based on home type.<\/p>\n<p>For homes acquired in 2023 through 2032, the credit amount ranges from $500 to $5,000, depending on the certification achieved and standards met, which include:<\/p>\n<ul>\n<li>Energy Star program requirements<\/li>\n<li>Zero Energy Ready Home program requirements<\/li>\n<li>Prevailing wage requirements (for multifamily dwelling units only)<\/li>\n<\/ul>\n<p><strong>Energy Saving Requirements<\/strong><\/p>\n<p>The energy saving requirements incorporate certain <a href=\"https:\/\/www.energystar.gov\/about\/federal_tax_credits\/federal_tax_credit_archives\/tax_credits_home_builders\">Energy Star<\/a> program requirements and certain <a href=\"https:\/\/www.energy.gov\/eere\/buildings\/doe-zero-energy-ready-home-zerh-program-requirements\">Zero Energy Ready Home<\/a> program requirements. For homes acquired in 2023 and after, refer to the tables on the <a href=\"https:\/\/www.energystar.gov\/about\/federal_tax_credits\/federal_tax_credit_archives\/tax_credits_home_builders\">Energy Star<\/a> website for the minimum Energy Star program versions eligible under section 45L. For more information on the relevant Zero Energy Ready Home program in effect, refer to the <a href=\"https:\/\/www.energy.gov\/eere\/buildings\/doe-zero-energy-ready-home-zerh-program-requirements\">Department of Energy<\/a>, DOE Zero Energy Ready Home (ZERH) Program Requirements.<\/p>\n<p><strong>Requirements and credit amounts before 2023<\/strong><\/p>\n<p>For homes acquired before 2023, the credit amount is $1,000 or $2,000, depending on the standards met, which include:<\/p>\n<ul>\n<li>Certifying that the home has an annual level of heating and cooling energy consumption that is at least 50% (or 30% for certain manufactured homes) less than that of a comparable home that meets certain energy standards, with building envelope component improvements accounting for at least 1\/5 (or 1\/3 for certain manufactured homes) of the reduction.<\/li>\n<li>Meeting certain federal manufactured home rules<\/li>\n<\/ul>\n","protected":false},"excerpt":{"rendered":"<p>IR-2023-180, Sept. 27, 2023,\u00a0WASHINGTON, \u2014 The&#46;&#46;&#46;<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[11,7],"tags":[],"class_list":["post-60062","post","type-post","status-publish","format-standard","hentry","category-business","category-u-s-a"],"_links":{"self":[{"href":"https:\/\/lapost.us\/index.php?rest_route=\/wp\/v2\/posts\/60062","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/lapost.us\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/lapost.us\/index.php?rest_route=\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/lapost.us\/index.php?rest_route=\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/lapost.us\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=60062"}],"version-history":[{"count":1,"href":"https:\/\/lapost.us\/index.php?rest_route=\/wp\/v2\/posts\/60062\/revisions"}],"predecessor-version":[{"id":60063,"href":"https:\/\/lapost.us\/index.php?rest_route=\/wp\/v2\/posts\/60062\/revisions\/60063"}],"wp:attachment":[{"href":"https:\/\/lapost.us\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=60062"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/lapost.us\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=60062"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/lapost.us\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=60062"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}