Heads up if your construction business builds homes: The tax bill working its way through Congress terminates the New Energy Efficient Home (45L) Credit. The credit is designed to incentivize builders to construct energy-efficient single- and multifamily homes. Currently, eligible contractors that build or substantially remodel homes can claim federal tax credits of up to $5,000 per home. The credit is scheduled to be available through 2032, but congressional Republicans plan to repeal it after 2025. This repeal is part of President Trump’s effort to eliminate Inflation Reduction Act (IRA) provisions related to energy efficiency. The bill also terminates other IRA tax breaks.
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