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Energy Efficient Home Credit (45L) in Illinois 2026

Calculate your energy efficient home credit (45l) tax savings in Illinois. With Illinois's 4.95% top state tax rate, your combined savings are higher.

Illinois Tax Overview

State Income Tax
4.95%
flat
Sales Tax
6.25%
avg combined: 8.82%
Property Tax Rate
2.07%
Median Income
$72,205

Flat 4.95% (constitutionally mandated). No standard deduction. Second-highest property taxes (2.07%). Most retirement income exempt.

Illinois Income Tax Brackets (Single)

4.95%
$0 +
Your bracket
$5,000
Est. Total Savings
$5,000
Max Deduction
Tax Credit
Deduction Type
26.9%
Combined Tax Rate

Energy Efficient Home Credit (45L) Savings Calculator for Illinois

$
$

Federal Savings

$5,000

22% bracket

Illinois State

$0

4.95% rate

Total Savings

$5,000

26.9% combined

Tax credits reduce your tax bill dollar-for-dollar, regardless of your tax bracket.

Savings by Tax Bracket in Illinois

10%
$5,000
12%
$5,000
22%
$5,000
24%
$5,000
32%
$5,000
35%
$5,000
37%
$5,000

Includes 4.95% Illinois state tax on top of federal savings.

Eligibility Requirements

Builders or developers of new energy-efficient homes

  • 1$2,500 for ENERGY STAR certified homes
  • 2$5,000 for DOE Zero Energy Ready homes
  • 3Must meet prevailing wage requirements for full credit

Illinois residents should verify that this deduction is also recognized on their state tax return for additional savings of up to 4.95%.

Common Mistakes to Avoid

  • !Not obtaining required certifications before claiming
  • !Missing prevailing wage requirements
  • !Failing to meet the 50% energy savings threshold
  • !Forgetting to claim the deduction on your Illinois state return (missing up to 4.95% additional savings)

Illinois Filing Tips

With no standard deduction, maximize pre-tax retirement contributions. Property taxes can exceed $10,000 annually. Illinois exempts most retirement income. Focus on property tax reduction strategies.

Required Tax Forms

Form 8908Form 3800

File these forms with your federal tax return to claim the energy efficient home credit (45l). Illinois may require additional state-specific forms.

Other Tax Deductions in Illinois

Mortgage Interest Deduction

Housing

~$4,287
est. savings

Property Tax Deduction

Housing

~$2,695
est. savings

Home Office Deduction

Housing

~$1,470
est. savings

Home Energy Tax Credit

Housing

~$1,800
est. savings

Residential Solar Tax Credit

Housing

~$7,500
est. savings

Military Moving Expenses

Housing

~$4,900
est. savings

PMI Premium Deduction

Housing

~$1,347
est. savings

Mortgage Points Deduction

Housing

~$2,450
est. savings

Energy Efficient Home Credit (45L) in Neighboring States

Wisconsin

7.65% top rate (progressive)

~$2,500
-2,500 vs Illinois

Iowa

3.8% top rate (flat)

~$2,500
-2,500 vs Illinois

Missouri

4.8% top rate (progressive)

~$2,500
-2,500 vs Illinois

Kentucky

4% top rate (flat)

~$2,500
-2,500 vs Illinois

Indiana

3.05% top rate (flat)

~$2,500
-2,500 vs Illinois

Tax Calculators for Illinois Cities

ChicagoAuroraJolietNapervilleRockfordElginSpringfieldPeoriaWaukeganChampaign

Calculate Your Full Tax Savings in Illinois

Use our free tax calculators to optimize your entire tax return for Illinois.

Income Tax CalculatorIllinois Income TaxFull Energy Efficient Home Credit (45L) Guide

Frequently Asked Questions

How much can I save with the Energy Efficient Home Credit (45L) in Illinois?

In Illinois, the energy efficient home credit (45l) can save you an estimated $5,000 per year on a $5,000 deduction. This includes $5,000 in federal tax savings and $0 in Illinois state tax savings at the 4.95% marginal rate. The national average savings is $2,500/year.

What is the Illinois state income tax rate?

Illinois has a flat income tax system with a top rate of 4.95%. Flat 4.95% (constitutionally mandated). No standard deduction. Second-highest property taxes (2.07%). Most retirement income exempt.

Who qualifies for the Energy Efficient Home Credit (45L) in Illinois?

Builders or developers of new energy-efficient homes. The eligibility requirements are the same whether you live in Illinois or another state, as this is a federal tax credit. However, your total savings will vary based on Illinois's 4.95% top state tax rate.

What tax forms do I need to claim the Energy Efficient Home Credit (45L) in Illinois?

To claim the energy efficient home credit (45l), you need to file Form 8908 and Form 3800 with your federal return. Illinois residents should also check if the state allows this deduction on their state return for additional savings of up to 4.95%. Filing status affects your deduction limits and tax bracket.

Is the Energy Efficient Home Credit (45L) better in Illinois than in states without income tax?

Yes, Illinois residents benefit more because the state's 4.95% top income tax rate means the deduction reduces both your federal AND state tax liability. In states with no income tax (like Texas, Florida, or Nevada), this deduction only reduces federal taxes. Your combined rate of 26.9% means more savings per dollar deducted.

What is the standard deduction in Illinois for 2026?

Illinois's standard deduction is $0 for single filers and $0 for married filing jointly. With no standard deduction, maximize pre-tax retirement contributions. Property taxes can exceed $10,000 annually. Illinois exempts most retirement income. Focus on property tax reduction strategies.

Related Calculators

Mortgage Interest Deduction in Illinois

Avg savings: $3,500/year

Property Tax Deduction in Illinois

Avg savings: $2,200/year

Home Office Deduction in Illinois

Avg savings: $1,200/year

Home Energy Tax Credit in Illinois

Avg savings: $1,800/year

Residential Solar Tax Credit in Illinois

Avg savings: $7,500/year

Military Moving Expenses in Illinois

Avg savings: $4,000/year