EP 86 - Tax Credits for Real Estate Developers w/ Rick Kleban & Steve Wyatt

The Mark Perlberg CPA Podcast

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Tax credits offer dollar-for-dollar reductions in tax liability, making them substantially more valuable than deductions that merely reduce taxable income. The 45L tax credit provides qualifying real estate developers with $2,000-$5,000 per residential unit for energy-efficient new construction.
• Available to builders with tax basis in the property during development (track builders, not custom home builders)
• Requires construction of at least 40 residential dwellings annually to be cost-effective
• Pre-2023 properties needed to be 50% more efficient than 2006 IECC standards
• Post-2023 properties must meet Energy Star requirements
• Multifamily developers must meet prevailing wage requirements for the higher credit amount
• Properties can qualify for up to $5,000 per unit if they meet "zero energy ready" standards
• Credits can be claimed retroactively by amending returns from the past three years
• Professional assessment includes blueprint evaluation, energy testing, and certification
• Real estate developers may also qualify for R&D tax credits on engineering expenses
• Typical R&D credits amount to 7-10% of qualifying engineering costs
Visit the link in the show notes to schedule a free assessment with Sycamore Growth Group to determine if your properties qualify for these valuable tax credits.
To learn more about what they do at Sycamore Growth Group go to: https://www.sycamoregrowthgroup.com/

Chapters

1. Introduction to Tax Credits for Real Estate (00:00:00)

2. What is the 45L Tax Credit? (00:03:16)

3. Who Qualifies for the 45L Credit (00:09:14)

4. Energy Efficiency Requirements and Changes (00:14:30)

5. Credit Calculation and Implementation Process (00:19:55)

6. R&D Tax Credits for Real Estate Developers (00:24:12)

7. Final Thoughts and Future of Tax Credits (00:28:17)