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Energy Efficient Home Credit (45L) in Pennsylvania 2026

Calculate your energy efficient home credit (45l) tax savings in Pennsylvania. With Pennsylvania's 3.07% top state tax rate, your combined savings are higher.

Pennsylvania Tax Overview

State Income Tax
3.07%
flat
Sales Tax
6%
avg combined: 6.34%
Property Tax Rate
1.49%
Median Income
$67,587

Low flat 3.07%. Local taxes (Philadelphia: 3.75%). Inheritance tax (4.5-15%). Most retirement income exempt.

Pennsylvania Income Tax Brackets (Single)

3.07%
$0 +
Your bracket
$5,000
Est. Total Savings
$5,000
Max Deduction
Tax Credit
Deduction Type
25.1%
Combined Tax Rate

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

$
$

Federal Savings

$5,000

22% bracket

Pennsylvania State

$0

3.07% rate

Total Savings

$5,000

25.1% combined

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

Savings by Tax Bracket in Pennsylvania

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

Includes 3.07% Pennsylvania 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

Pennsylvania residents should verify that this deduction is also recognized on their state tax return for additional savings of up to 3.07%.

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 Pennsylvania state return (missing up to 3.07% additional savings)

Pennsylvania Filing Tips

Local taxes can double your burden in cities. PA exempts most retirement income. Inheritance tax applies based on relationship. No deductions are allowed on PA returns.

Required Tax Forms

Form 8908Form 3800

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

Other Tax Deductions in Pennsylvania

Mortgage Interest Deduction

Housing

~$3,988
est. savings

Property Tax Deduction

Housing

~$2,507
est. savings

Home Office Deduction

Housing

~$1,367
est. savings

Home Energy Tax Credit

Housing

~$1,800
est. savings

Residential Solar Tax Credit

Housing

~$7,500
est. savings

Military Moving Expenses

Housing

~$4,558
est. savings

PMI Premium Deduction

Housing

~$1,254
est. savings

Mortgage Points Deduction

Housing

~$2,279
est. savings

Energy Efficient Home Credit (45L) in Neighboring States

New York

10.9% top rate (progressive)

~$2,500
-2,500 vs Pennsylvania

New Jersey

10.75% top rate (progressive)

~$2,500
-2,500 vs Pennsylvania

Delaware

6.6% top rate (progressive)

~$2,500
-2,500 vs Pennsylvania

Maryland

5.75% top rate (progressive)

~$2,500
-2,500 vs Pennsylvania

West Virginia

5.12% top rate (progressive)

~$2,500
-2,500 vs Pennsylvania

Ohio

3.5% top rate (progressive)

~$2,500
-2,500 vs Pennsylvania

Tax Calculators for Pennsylvania Cities

PhiladelphiaPittsburghAllentownReadingErieUpper DarbyScrantonBethlehemLower MerionLancaster

Calculate Your Full Tax Savings in Pennsylvania

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

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

Frequently Asked Questions

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

In Pennsylvania, 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 Pennsylvania state tax savings at the 3.07% marginal rate. The national average savings is $2,500/year.

What is the Pennsylvania state income tax rate?

Pennsylvania has a flat income tax system with a top rate of 3.07%. Low flat 3.07%. Local taxes (Philadelphia: 3.75%). Inheritance tax (4.5-15%). Most retirement income exempt.

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

Builders or developers of new energy-efficient homes. The eligibility requirements are the same whether you live in Pennsylvania or another state, as this is a federal tax credit. However, your total savings will vary based on Pennsylvania's 3.07% top state tax rate.

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

To claim the energy efficient home credit (45l), you need to file Form 8908 and Form 3800 with your federal return. Pennsylvania residents should also check if the state allows this deduction on their state return for additional savings of up to 3.07%. Filing status affects your deduction limits and tax bracket.

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

Yes, Pennsylvania residents benefit more because the state's 3.07% 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 25.1% means more savings per dollar deducted.

What is the standard deduction in Pennsylvania for 2026?

Pennsylvania's standard deduction is $0 for single filers and $0 for married filing jointly. Local taxes can double your burden in cities. PA exempts most retirement income. Inheritance tax applies based on relationship. No deductions are allowed on PA returns.

Related Calculators

Mortgage Interest Deduction in Pennsylvania

Avg savings: $3,500/year

Property Tax Deduction in Pennsylvania

Avg savings: $2,200/year

Home Office Deduction in Pennsylvania

Avg savings: $1,200/year

Home Energy Tax Credit in Pennsylvania

Avg savings: $1,800/year

Residential Solar Tax Credit in Pennsylvania

Avg savings: $7,500/year

Military Moving Expenses in Pennsylvania

Avg savings: $4,000/year