Tax Credits and Deductions
Funding Carbon-Neutral Upgrades
45L New Home Energy Efficiency Tax Credit
The Energy Efficient Home Credit applies to developers of energy-efficient homes and apartment buildings. The 45L Tax Credit offers $2,000 per dwelling unit by lowering energy consumption levels significantly less than certain national energy standards.
On Dec. 27, 2020, the Consolidated Appropriations Act, 2021, was signed into law which extended the 45L Energy Efficient Home Tax Credit to include any new, qualified energy-efficient homes through 2021.
179D Commercial Energy Efficiency Tax Deduction
The Energy Policy Act of 2005 created a tax deduction for energy-efficient buildings found in Section 179D of the Federal Tax Code. Section 179D provides a tax deduction of up to $1.80 per square foot for energy efficiency improvements to commercial buildings.
Building owners or designers can claim a tax deduction for installing energy-efficient upgrades to reduce their annual energy spending.