Streamlining 45L Reporting with Ekotrope’s 45L Analysis Support Service

We found over 19,000 homes that comply with the 45L Tax Credit that have yet to print their 45L Report in 2022. This report is worth $2,000 to each builder who earned it and represents one of the best growth opportunities for our industry.

These un-printed reports are likely a result of the Congress’ retro-active extension of the tax credit for homes sold in 2022. We want to cover three items that impact these 19,000+ homes:

• How we can help you download these reports quickly

• What changed in the 45L Tax Credit

• The predicted impact of the new tax credit

How we can help:

We don’t want any of your customers to leave any tax credit money on the table. By our count, there are over 34 million dollars in incentives available for homes built in the last 9 months. However, we understand that the retroactive eligibility for homes built in 2022 may cause stress on your organization as you try to determine which of your energy models meet requirements for the old version of the tax credit.

To help alleviate this strain and ensure builders can claim credits, Ekotrope is offering a turnkey analysis and report download service for the 45L Tax Credit.

As part of this service, we will first determine which of your energy models pass 45L, then generate and send you the 45L reports in bulk along with a summary of the number of homes each builder earned the Tax Credit. This will make it easier for you to determine which of your homes are compliant with the tax credit and speed along report generation.

This is purely a time-saving convenience service, you can always download these in-app yourself at no charge.

If you are interested in this service, please contact sales@ekotrope.com. The initial analysis will cost $1,000 and the first 50 passing reports will be free. After that, the fee will be $20 per passing report.

Changes to the 45L Tax Credit

The 45L Tax Credit has been passed into law as part of the 2022 Inflation Reduction Act. The IRA extends the tax credit for 10 years through December 2032 - the longest extension ever granted for 45L.

In addition, the IRA retroactively extended the tax credit for homes purchased in 2022.

This means that for homes acquired December 31, 2020 through the end of 2022, the previous version of the 45L Tax Credit will be extended to cover all of applicable homes.

Homes sold in 2023 and the following 10 years will need to comply with new requirements to earn the tax credit. You can learn more about the details of these changes in our recent blog, “The New 45L Tax Credit: What is it and How to Prepare.”

The Impact

We are thrilled about the new tax credit as it represents a future of more efficient housing. The 10-year extension now allows for builders to bake 45L compliance into their plans for years to come.  

The new reliability of this tax credit creates a very strong incentive for all builders to build more efficiently, increase the number of HERS ratings, and grow our industry. We really believe that most,  if not all builders, will develop and evaluate plans to increase their home performance to earn this tax credit over the next 10 years. 

Does this seem like a lot of planning and analysis? That’s where we come in! We’re here to help you navigate the path towards cost-effective, high-performing and energy efficient homes. 2023 is right around the corner. Contact us today to get started. 

Stay tuned for more information regarding the new 45L Tax Credit!