Ekotrope Anticipates $250 Million Decrease in 45L Tax Credit Rebates for 2023

BOSTON, July 18, 2023 (VSNewsNetwork.com) - Ekotrope, a leading provider of building software and data solutions, predicts a significant decline in 45L Tax Credit rebates for newly constructed homes in 2023. As the market leader in home energy rating software, Ekotrope has observed that many participants have yet to adjust to the new compliance criteria required for the 2022 compliance rate, resulting in an estimated $250 million reduction in rebate dollars awarded for the tax credit compared to the previous year.

The updated incentive amounts, ranging from $2,500 to $5,000 per qualified home, present a significant opportunity for builders. Ekotrope's data shows that the tax credit has had a positive impact on national ENERGY STAR (E.S.) 3.1 compliance rates as builders strive to construct higher-performing homes using advanced technology. However, the industry faces a learning curve in adapting to the more stringent requirements of the 45L Tax Credit, which were released just months before the effective date, after many builders had already finalized their plans for 2023 homes.

To bridge the compliance gap, Ekotrope advises builders to strategize their compliance efforts by focusing on homes that already meet E.S. 3.1 requirements and finding ways to meet the additional mandatory criteria. With over 60% of HERS-rated homes meeting E.S. 3.1 requirements and an additional 16% within a five percent margin of passing, compliance is achievable for many builders. Ekotrope will provide further insights and strategies during its upcoming State of the Industry Update webinar series.

To register for Ekotrope's webinar session and explore opportunities for increased compliance, visit ekotrope.com.

Source: Ekotrope via Newswire