EP84 Update on the 45L Federal Builders' Tax Credit for Energy Efficient Homes with Steve Baden
Release Date: 11/22/2021
RESTalk
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info_outline“Good legislation should bring clarity, not confusion.”
-Bill Haslam
The Federal Tax Credit for Builders of Energy Efficient Homes, commonly known as 45L, in some ways remains an artifact of old thinking.
How much has technology and performance in housing advanced in the last 15 years?
What can you do to stay informed, aware and exert influence to improve what could be a significant motivator for building more energy efficient homes?
NOTE: This episode as recorded in late September 2021 yet will air in late November 2021. Consequently, some factors and details may have changed in the interim.
Steve Baden joins us to share updates and possible changes that are coming in the 45L federal builders' tax credit with the advent of a new administration and changes in Congress in the last year.
In past Episodes of RESTalk (#57 & 62) we have learned of the on-again, off-again nature of 45L and how this pattern makes it hard for builders to count on it and invest via engagement in their planning cycles. Steve also notes that its basis is “ancient as a 2006 flip phone”.
Unfortunately, this legislation is again scheduled to expire, this time on December 31, 2021. Steve covers the proposed changes that include giving more credit to more energy efficient homes via two tiers of performance with two corresponding levels of tax credits.
As he covers the intricacies of how this is moving through Congress Steve remains hopeful that the legislation may receive a much needed “upgrade” and perhaps be extended to last for 5 or even 10 years.
The RESNET community is encouraged to learn more and engage with their legislators to drive home points such as local jobs, the progress made in construction technology and how builders must put skin in the game to participate.
Learn more about how to advocate for this via resources on the RESNET site found here: https://www.resnet.us/about/advocacy/45l/ and here: https://www.resnet.us/about/advocacy/
Builders can review details on the IRS FORM 8908: https://www.irs.gov/forms-pubs/about-form-8908
In closing Steve notes, if 45L is revised or extended, this topic will be covered in depth at the RESNET 2022 conference: Learn more here: https://www.resnet.us/conference/conference-2022/
RESTalk: To the RESNET community, we hear you and want to engage.
Learn more at www.RESNET.us
Or for more info on this topic contact RESNET at INFO@RESNET.US