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Many residential project types qualify for 45L tax credits: Single-family homes (custom & production home developments) Multi-family apartment and condominium projects 3-stories above grade and less Additional Dwelling Units (ADUs) Assisted living facilities Student housing Substantial reconstruction or rehabilitation 45L tax credit basics The 45L credit is federal tax incentive that promotes the construction of energy efficient residential buildings. The credit is available to builders developers and others who build homes for sale or lease. To qualify for the $2000 tax credit an eligible “dwelling” must: Be at least 50% more efficient than the 2006 IECC benchmark. Efficiency compliance must be verified with DOE approved 45L software such as Micropas. Have the energy features verified by a qualified HERS Rater (Eligible Certifier) Be sold or leased prior to January 1 2022 Most California residential building projects qualify for this credit by building to current California code. California’s progressive Building Energy Code (Title 24) is substantially more stringent than 2006 IECC.