§45L Tax Credit

What is the §45L Tax Credit?

Section 45L offers a tax credit per unit for qualifying energy-efficient multifamily homes. Available to builders and developers who meet ENERGY STAR® or Zero Energy Ready Home standards, 45L is a powerful incentive that improves project ROI, supports environmental goals, and rewards smart design in new construction and major renovations.

Walker Blue’s team provides audit-proof Energy Star certifications for homebuilders and residential developers so you can obtain the Section 45L tax credits you deserve.

We are committed to guiding your project through every step of the process, from initial assessment to certification and tax credit claiming. Our expertise and dedication will help you navigate the intricacies of the program and maximize your project’s success.

Discuss your project with Pete

One Big Beautiful Bill Act (OBBBA) Change: The 45L credit is terminated for homes acquired (sold or leased) after June 30, 2026.

While the per-unit credit is still available for qualifying homes acquired before June 30, 2026, projects with acquisition or lease dates after that are ineligible under current law. If you’re planning construction or sale timelines, acting before that cutoff date is essential to capture the full benefit.

§45L Tax Credit Energy Multi-Family Homes

What properties are eligible?

Dwelling units designed for occupancy by one family.
Eligible property types include:
- Apartments
- Condominiums
- Assisted living facilities
- Student housing
- Townhouses
- Single-family homes
Each individual unit within a building is eligible for the tax credit.

Height Limitations Based on Lease Year:

For projects initially leased in 2022 or earlier:
- Must be 3 stories or less to qualify.
For projects leased in 2023 or later:
- Mid-rise and high-rise buildings are now eligible.
- The 3-story limitation no longer applies.

Who is the eligible contractor?

The eligible contractor is the person or company that owns and has a basis in the qualified energy-efficient home during its construction. Third-party contractors are not eligible contractors.

Qualification Requirements: Units may be certified under either the Energy Star new Homes and multifamily programs and for an increased credit amount the DOE- Zero Energy Ready Homes Program (ZERH)

Height Requirements: No limitation of stories for the energy star program. Limited to 5 Stories or Less for ZERH

Tax Credit Amount: **$2500 for Energy Star $5000 for ZERH

Tax Year Eligibility: Eligible for new homes initially sold or leased after 12/31/2022 It is necessary that a pre drywall inspection be performed so it is important to start the process as early as possible even as soon as the pre construction/design phase.