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45L Energy Efficient Tax Credit

The Energy Efficient Home Credit is for developers and owners of energy efficient homes, condos, and apartment buildings. The 45L Tax Credit was originally made effective in 2006 and has recently been extended to 2018 and offers $2,000 per dwelling unit to developments with energy consumption levels significantly less than certain national energy standards. This credit also applies retroactively so if you’ve made improvements to a property between 2006 and 2018, it may qualify for the 45L tax credit. Net Profit Advisors explores the possibility of this credit, along with many others, for any of our portfolio clients. If you own a multi-family residential property, and you haven’t taken advantage of this tax credit, you could be missing out on hundreds of thousands of dollars.

How Do I Qualify?

  • Residential buildings  must meet these three requirments in order to be elligible. 1) located in the United States 2) was substantially completed after a tax year inside the statute of limitations and before December 31, 2017, and 3) meets the energy savings requirements of Code Section 45L(c). To meet this requirement, the dwelling must generally be certified in accordance with guidance prescribed by the IRS to have a projected level of annual heating and cooling energy consumption that meets the standards for the 50% reduction in energy usage.


If you’re already a Net Profit Portfolio member, don’t worry, we are already evaluating your property to see if it’s eligible for the 45L tax credit. If you’re not, then request an invitation so we can begin the process evaluating your properties to see what kind of strategies can be taken advantage of.