The year-end tax bill renews a big tax credit for contractors, reports Joe Sawatske in a new Eide Bailly Insight:
45L is a section of the Internal Revenue Code that provides a tax credit of up to $2,000 for each qualified residential dwelling unit an eligible contractor builds utilizing energy-efficient technology. Residential properties qualified for the credit include single family and multifamily residences with three or fewer above-grade stories.
It’s not just a good idea for tax planning. There may be refunds available:
The extension covers qualified residential dwelling units built and put in use prior to December 31, 2020. Therefore, claims for refunds or amended returns should be considered, particularly for the tax year 2018.
Read the whole thing to see how it works: Energy-Efficient Contractors Get A Benefit with the Extension of 45L