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Energy Efficient Home Credit (45L) in New Jersey 2026

Calculate your energy efficient home credit (45l) tax savings in New Jersey. With New Jersey's 10.75% top state tax rate, your combined savings are higher.

New Jersey Tax Overview

State Income Tax
10.75%
progressive
Sales Tax
6.625%
avg combined: 6.6%
Property Tax Rate
2.23%
Median Income
$93,851

Highest property taxes (2.23%). Top rate 10.75%. Both estate AND inheritance tax. No standard deduction.

New Jersey Income Tax Brackets (Single)

1.4%
$0 - $20,000
1.75%
$20,000 - $35,000
3.5%
$35,000 - $40,000
5.525%
$40,000 - $75,000
Your bracket
6.37%
$75,000 - $500,000
Your bracket
8.97%
$500,000 - $1,000,000
10.75%
$1,000,000 +
$5,000
Est. Total Savings
$5,000
Max Deduction
Tax Credit
Deduction Type
28.4%
Combined Tax Rate

Energy Efficient Home Credit (45L) Savings Calculator for New Jersey

$
$

Federal Savings

$5,000

22% bracket

New Jersey State

$0

6.37% rate

Total Savings

$5,000

28.4% combined

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

Savings by Tax Bracket in New Jersey

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

Includes 6.37% New Jersey 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

New Jersey residents should verify that this deduction is also recognized on their state tax return for additional savings of up to 10.75%.

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 New Jersey state return (missing up to 10.75% additional savings)

New Jersey Filing Tips

No standard deduction. Property taxes average over $9,000 annually. Both estate and inheritance taxes apply. NJ offers FAIR rebate for property tax relief.

Required Tax Forms

Form 8908Form 3800

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

Other Tax Deductions in New Jersey

Mortgage Interest Deduction

Housing

~$4,513
est. savings

Property Tax Deduction

Housing

~$2,837
est. savings

Home Office Deduction

Housing

~$1,547
est. savings

Home Energy Tax Credit

Housing

~$1,800
est. savings

Residential Solar Tax Credit

Housing

~$7,500
est. savings

Military Moving Expenses

Housing

~$5,158
est. savings

PMI Premium Deduction

Housing

~$1,419
est. savings

Mortgage Points Deduction

Housing

~$2,579
est. savings

Energy Efficient Home Credit (45L) in Neighboring States

New York

10.9% top rate (progressive)

~$2,500
-2,500 vs New Jersey

Pennsylvania

3.07% top rate (flat)

~$2,500
-2,500 vs New Jersey

Delaware

6.6% top rate (progressive)

~$2,500
-2,500 vs New Jersey

Tax Calculators for New Jersey Cities

NewarkJersey CityPatersonElizabethEdisonLakewoodWoodbridgeToms RiverTrentonClifton

Calculate Your Full Tax Savings in New Jersey

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

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

Frequently Asked Questions

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

In New Jersey, 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 New Jersey state tax savings at the 6.37% marginal rate. The national average savings is $2,500/year.

What is the New Jersey state income tax rate?

New Jersey has a progressive income tax system with a top rate of 10.75%. Highest property taxes (2.23%). Top rate 10.75%. Both estate AND inheritance tax. No standard deduction.

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

Builders or developers of new energy-efficient homes. The eligibility requirements are the same whether you live in New Jersey or another state, as this is a federal tax credit. However, your total savings will vary based on New Jersey's 10.75% top state tax rate.

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

To claim the energy efficient home credit (45l), you need to file Form 8908 and Form 3800 with your federal return. New Jersey residents should also check if the state allows this deduction on their state return for additional savings of up to 10.75%. Filing status affects your deduction limits and tax bracket.

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

Yes, New Jersey residents benefit more because the state's 10.75% 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 28.4% means more savings per dollar deducted.

What is the standard deduction in New Jersey for 2026?

New Jersey's standard deduction is $0 for single filers and $0 for married filing jointly. No standard deduction. Property taxes average over $9,000 annually. Both estate and inheritance taxes apply. NJ offers FAIR rebate for property tax relief.

Related Calculators

Mortgage Interest Deduction in New Jersey

Avg savings: $3,500/year

Property Tax Deduction in New Jersey

Avg savings: $2,200/year

Home Office Deduction in New Jersey

Avg savings: $1,200/year

Home Energy Tax Credit in New Jersey

Avg savings: $1,800/year

Residential Solar Tax Credit in New Jersey

Avg savings: $7,500/year

Military Moving Expenses in New Jersey

Avg savings: $4,000/year