Residential & Multi-Family
Section 45L provides for a $2,000 tax credit for each dwelling unit that is certified for energy efficiency.
Schultz Energy Consulting's team of experienced professionals will help you determine your building's eligibility and qualification for tax benefits. Our engineers can do the necessary on-site testing and computer modeling and our tax experts can also provide the necessary paperwork to claim your benefits.
Call Schultz Energy Consulting, LLC for 45L tax credits & 179D tax deductions.
Sections 45L and 179D Extended Retroactively for 2017 Projects
February 9, 2020
Early morning February, 9th the Bipartisan Budget Act was Passed providing a One-year retroactive active extension of §179D and §45L energy tax incentive provisions.
This will allow projects placed in service in 2017 to be certified for qualifying energy tax incentives. Though the original expectation was that a 2-year extension would be passed, members of the House Ways and Means committee were reluctant to pass a longer-term bill and are planning on holding hearings later this year to examine which extenders could be removed from a future longer-term package.
The retroactive passage of 179D and 45L together with the tax reform package passed in December of 2017, provide great opportunity to maximize the value of the incentives for your 2017 Tax filing. We are ready to serve you and get your projects started immediately, and we recommend getting any opportunities reviewed and started as soon a possible.
Home Improvements Energy Tax Credits
January 1, 2018
Homeowners may qualify for a federal tax credit for making improvements or installing appliances designed to boost the energy-efficiency of a home. There are several tax credits for residential energy efficiency that have been renewed. These tax credits are available for energy efficient purchases made in 2016, as well as retroactive to purchases made in 2015. Solar panels added to your home are good through 2019 and are then reduced each year until end-of-year of 2021.
EnergyStar products, which boast 30 percent less energy usage, are eligible for tax credits. Initial credits that have been renewed were for purchase and installation of qualifying energy-efficient products in your main home in the years 2006, 2007, and 2009 through 2014. The requirements for the residential energy tax credits vary for each year that the credit is available.
Home Improvements (aka Nonbusiness Energy Property Credit)
Homeowners may be eligible for the nonbusiness energy property credit. This credit is worth 10 percent of the purchase price of qualified energy-efficient products installed at the taxpayer's main residence. Qualified energy-efficient products include:
Exterior windows and skylights
Metal or asphalt roof with pigmented coatings or cooling granules that are designed to reduce heat gain
Central air conditioners
Hot water boilers
Advanced main air circulating fans
Improvements Restricted to 'Main Home'
The tax credit for nonbusiness energy property is restricted to improvements to and appliances installed at a primary residence. Improvements made on rental homes, second homes, or vacation property are not eligible for this tax credit.
March 1, 2019
The Tax Extender and Disaster Relief Act of 2019 has been introduced, This legislation would reinstate and extend key housing tax provisions through Dec. 31, 2019.
The legislation pertains to "tax extenders" which are a serious of temporary tax provisions that expired in 2017. The bill would retroactively reinstate in 2018 and extend the following expired tax provisions through 2019:
Deduction for Mortgage Insurance.
Section 45L Tax Credit for Energy Efficient New Homes. Provides builders a $2,000 tax credit for the construction of homes exceeding heating and cooling energy standards by 50%. The base energy code is the 2006 International Energy Conservation Code plus supplements. Builders must have tax basis in the home to claim the credit (i.e., they must own and then sell/lease the residence).
Section 25C Tax Credit for Qualified Energy Efficiency Improvements. .
Section 179D Energy Efficient Commercial Buildings Deduction. Provides a deduction of up to $1.80 per square foot for commercial and multifamily buildings that exceed specific energy efficiency requirements under ASHRAE 2007.
Mortgage Forgiveness Tax Relief.
The legislation also provides temporary tax relief for victims of most major natural disasters that occurred after Jan. 1, 2018.
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