Congress Retroactively Extends Temporary Tax Break for 2017 Real Estate

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The 45L tax credit for energy efficient homes has been retroactively extended by the federal government. This is a $2,000 federal tax credit that all developers of energy efficient new homes and low-rise multifamily units may be eligible for. Builders are able to claim homes on 2017 tax filings, or amend tax files as far back as 2014.

In order to receive the tax break, you must:

  • Show compliance using an approved software platform. In California, EnergyPro 4.8 is the approved software version. This version has a module that was custom built to handle these tax credits. It is distributed and owned by CHEERS
  • Demonstrate 50% improvement in heating and cooling loads over 2006 IECC, and at least 10% improvement from the envelope (all homes enrolled in CAHP should qualify)
  • Submit IRS form 8908
  • Have the EnergyPro 4.8 output report signed by your certified HERS rater to confirm the home meets the tax credit requirements
  • Save the output reports in the event of an IRS audit

Please note, CHEERS is the facilitator in California as they own EnergyPro 4.8. A CalCERTS HERS Rater would need to contact CHEERS to enroll. See this FAQ guide for more information.