IRS Releases Guidance for 45L Tax Credit as Amended by the Inflation Reduction Act
The Internal Revenue Service on Sept. 27 issued its notice providing guidance related to Section 45L of the Internal Revenue Code, as amended by the Inflation Reduction Act of 2022 (IRA). The 45L tax credit is available to eligible contractors who construct homes that meet the required energy savings provisions of that section of the revenue code.
The amendments that resulted from the IRA apply to qualified new energy efficient homes acquired after December 31, 2022.
The IRS’ notice provides guidance that addresses eligibility for contractors, requirements and credit amounts for 2023 and after, energy savings requirements, and requirements and credit amounts for homes acquired before 2023.
Depending on the certification achieved, standards met, and when the home was acquired, credit amounts range from $500 to $5,000.
Click Here to view the update from the IRS that includes a summary and access to the public notice.