The Inflation Reduction Act (IRA) of 2022 brought a wave of positive changes, and the housing industry wasn’t left out. Section 45L, a tax credit that incentivizes builders to construct energy-efficient homes, got a significant boost. But what exactly changed, and how does it impact builders? Let’s dive into the Pre vs Post IRA landscape of Section 45L.
Before the IRA, Section 45L offered a per-dwelling tax credit to builders who met specific energy-efficiency standards. This credit helped offset construction costs and made energy-efficient residential property more financially attractive. However, the program had limitations:
The IRA significantly improved Section 45L, making it even more beneficial for builders:
The enhanced Section 45L offers a win-win situation:
The revamped Section 45L is a powerful tool that can accelerate the construction of sustainable homes. By making green building more financially rewarding, the IRA paves the way for a more energy-efficient future.
Embrace the power of tax credit savings with Source Advisors and propel your business towards growth and success. Partner with us today to unlock your company’s full potential.
