The Energy Efficient Home Tax Credit, also know as the 2005 EPAct or 45L Tax Credit, expired on December 31, 2016. Expiration of this credit has been a common occurrence since its inception back in 2005. Typically the credit expires and then it gets renewed and made retroactive in the following year. Unfortunately this is not likely to happen this time.
Our industry leaders are predicting the credit will not be renewed. The current Administration and Congress have made no movement on renewing the 45L Credit, which includes the $2,000 per home tax credit for builders who build energy efficient homes. We are recommending our clients not plan on this credit getting renewed in the near future.
RESNET, one of our industry leaders, as well as other industry allies are in the process of drafting a new credit to put before Congress. This is only in the beginning stages. The likelihood of when and if this new proposed credit gets pushed through is unknown at this point. All politics aside, it is my opinion that we will not see a new tax credit for energy efficient homes in place with the current administration in office.
The tax credit has been an important “product” for raters all over the U.S. I’ll be honest, it kept us a float the first couple years in business. It’s also been a great asset for builders who were already building a home that meet the criteria. The good news for raters across the U.S. is the new energy codes are making our involvement in the building process much more important. Using the Simulated Performance side of the energy code is better for builders and allows raters a way to market their services. Raters here in Michigan are lucky to have that. Some states are still behind on the energy code updates, but more states are moving in this direction, and this is giving raters a great opportunity.
As we hear more information on the Energy Efficient Homes Tax Credit, we will update our website. Please check back at our Tax Credit webpage or Blog for updated information in the future. You can also contact us at 616-419-8558 or email us HERE.