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PowerGreen Capital

Section 45L For Multi-Family Energy Efficiency

The Section 45L tax incentive is a federal income tax credit for multi-family home builders who construct energy-efficient buildings. It was recently extended and updated by the Inflation Reduction Act of 2022. The amount of the credit depends on the type and size of the buildings, as well as the energy consumption levels compared to certain national standards.

The 45L tax incentive is available to owners of multi-family buildings who are also the developers or builders of the units. The credit is worth $2,000 per dwelling unit that meets certain energy efficiency criteria. 

However, starting from 2023, the credit amount may vary depending on whether the contractors comply with prevailing wage requirements.