Welcome to our comprehensive guide on the 45L tax credit. This page provides detailed information on eligibility criteria and the steps to claim this valuable credit. We are committed to supporting your sustainable building practices.

Are you eligible for the 45L tax credit?

To be eligible for the 45L tax credit, developers need to meet specific requirements:

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Construction or sustainability renovation: developers must construct or significantly renovate homes to be energy efficient.

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Financial basis during construction: while developers can hire contractors, they must maintain a financial stake in the development during the construction phase.

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Selling or lease: upon completion, these energy-efficient homes must be sold or leased to homeowners or tenants for use as a primary residence.

How to claim the 45L tax credit

Claiming the 45L tax credit involves several steps to ensure compliance with IRS requirements:

  1. Pre-construction certification: developers must obtain a certification from a qualified third-party verifier; this process involves articulus pre-construction planning and must begin before breaking ground.
  2. Milestone inspections: calls for ongoing inspections at various construction milestones are essential.
  3. Diagnostic testing: final diagnostic testing of the dwelling units is necessary to meet the Internal Revenue Code Section 45L standards.

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