Construction companies can collect tax credits going back three years of homes built through the 45L program. The deadline to file depends on when the builder filed their taxes for that year. 

For example, in our current year 2025, a builder can collect the 45L tax credits for homes built in 2021 up until the date (in 2025) that they filed their 2021 taxes in 2022. So if the builder filed for an extension in 2022 for their 2021 taxes and filed on 10/15/2022, then they have until 10/15/2025 to file for their 2021 45L tax credits.

If tax credits exceed the amount of taxes paid, the difference is rolled over to the following year as tax credits and added to the new 45L tax credits amount. Unused tax credits can continue to roll over for a total of seven years.

Residential Homes:

Prior to 2023, a builder can receive $2000 per home ( a 4 plex would be $8000, a duplex would be $4000), or up to $2,000 per apartment (up to 3 story buildings only).

For 2023+, builders can receive up to $5,000 per home ($10,000 for a duplex, $20,000 for a 4-plex), or $5,000 per apartment (no limit on building height).

Commercial Properties:

For commercial properties, builders receive tax deductions (not tax credits), through the 179D program.

Prior to 2023, a builder can receive up to $1.80 per square foot for commercial properties in the form of a tax deduction.

For 2023, the construction company can receive up to $5.36 per square foot and for 2024 through current years, up to $5.65 per square foot.

Tax credits received in the current year of construction goes against what a builder will pay for taxes whether it’s quarterly or at the end of the current tax year. 

They can receive up to $5000 per home in tax credits.

For commercial properties, a builder can receive up to $5.65 per sq. ft. in the form of tax deductions. 

There are a few more requirements for 2023 including a blower test. Homes/buildings need to meet a certain requirement to pass inspection as well as earn the credit. 

A builder can collect these credits for new homes/buildings built each year going forward through 2035.

Unused tax credits can be rolled over to the following year and added to the new 45L tax credits amount. Unused tax credits can continue to roll over for a total of seven years.

Once our company has certified the builder’s homes for the 45L program, we will complete the IRS form 8908 for the builder for every year awarded (going back three years).

For tax credits awarded on previous years, the builder needs to file an amended federal income tax return using the 8908 form. They will then receive tax refunds from the IRS. 

For 45L tax credits received in the current year, the builder will receive a credit for taxes owed.

The auditor will request the 45L certificates and addresses to the properties.  The auditor will verify that there is in fact a residence at the address on the certificate (usually by using Google) then they approve the audit. 

If there is additional information needed, the builder can reach our company and we will provide any additional information needed.

It takes the IRS typically 2-4 months to amend the returns and send the refund checks. If a builder has a direct deposit setup with the IRS, then the refund typically get deposited in 1-2 months.

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