What We Do

IRA Clean Energy Incentives Rapidly Sunset Under OBBBA

  • The law eliminates many IRA-era green tax credits, including 179D, 45L, and electric vehicle credits.
  • 179D terminates for properties beginning construction after June 30, 2026.
  • 45L terminates for all dwelling units that are closed or initially leased after June 30, 2026. This reversal requires developers and energy companies to revisit project economics for renewable energy initiatives. 

Here are the three main requirements for these certificates to be valid for a tax return:

Home Builder Eligibility

Homes must be built using materials and methods outlined in the IRS building guidance. 

Construction aspects and materials analyzed through software

Information about the home’s materials, construction, and inspection must be entered into IRS-approved software (like Micropass v7.0).

Validation by a Certified Expert

The construction results and software report must be reviewed and validated by an approved expert, such as a certified HERS® rater.

For groups of homes with similar features, it might be possible to use sample data for certain parts of the certification process. This means data from one or more homes can be used for others in the group, as long as they share similar characteristics. According to §601.1, this sampling can be applied to specific criteria, but each home must still have its own individual rating to qualify for the tax credit.

Eligibility Requirements

  • Home is 50% more efficient than comparable standard
  • Builders must have ownership basis during construction
  • Must sell home as a residence

Energy Credits

2021-2022

  • Up to $2,000 per home/unit
  • Constructed and sold during 2021 or 2022
  • Saves 50% or more on energy costs
  • Documentation required
  • Time Sensitive Matter – 2021 credits expire on Oct 15 , 2025 or sooner
  • Home Certification required
  • Built to regional codes likely eligible

2023-2024

  • Up to $2,500 per home/unit
  • Constructed and sold during 2023 or 2024
  • Saves 50% or more on energy costs
  • Documentation required – more stringent than 2021-2022 criteria – meeting EnergyStar requirements.
  • Time Sensitive Matter – credits begin to expire on March 15, 2027
  • Home Certification required
  • Built to regional codes likely eligible

2025-2032

  • Up to $2,500 per home/unit*
  • Constructed and sold during 2025 and forward
  • Saves 50% or more on energy costs
  • Documentation required – more stringent than 2023-2024 criteria – meeting EnergyStar and Zero Energy Ready Home (“ZERH”) guidelines
  • Time Sensitive Matter – credits begin to expire on March 15, 2029
  • Home Certification required
  • Prevailing Wage Requirements for Multi-Family homes to qualify
  • *NET ZERO Homes up to $5,000