$LevyIO

Energy Efficient Home Credit (45L) in Philadelphia, PA 2026

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

Pennsylvania Tax Context

State Income Tax
3.07%
Local Income Tax
3.75%
Property Tax Rate
1.36%
Tax Burden
High

Philadelphia city wage tax: 3.75% residents, 3.44% non-residents; high combined tax burden

$5,000
Est. Total Savings
$5,000
Max Deduction
Tax Credit
Deduction Type
28.8%
Combined Tax Rate

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

$
$

Federal Savings

$5,000

22% bracket

Pennsylvania State

$0

3.07% rate

Local Tax

$0

3.75% rate

Total Savings

$5,000

28.8% combined

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

Savings by Tax Bracket in Philadelphia

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 + 3.75% local 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 3.07% additional savings)
  • !Not checking if Philadelphia's local income tax allows this deduction (3.75% potential additional savings)

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 Philadelphia, PA

Mortgage Interest Deduction

Housing

~$4,585
est. savings

Property Tax Deduction

Housing

~$2,882
est. savings

Home Office Deduction

Housing

~$1,572
est. savings

Home Energy Tax Credit

Housing

~$1,800
est. savings

Residential Solar Tax Credit

Housing

~$7,500
est. savings

Military Moving Expenses

Housing

~$5,240
est. savings

PMI Premium Deduction

Housing

~$1,441
est. savings

Mortgage Points Deduction

Housing

~$2,620
est. savings

Energy Efficient Home Credit (45L) in Other Pennsylvania Cities

Pittsburgh, PA

3.07% state + 3% local

~$2,500
-2,500 vs Philadelphia

Allentown, PA

3.07% state + 1.95% local

~$2,500
-2,500 vs Philadelphia

Reading, PA

3.07% state + 3.6% local

~$2,500
-2,500 vs Philadelphia

Erie, PA

3.07% state + 1.58% local

~$2,500
-2,500 vs Philadelphia

Upper Darby, PA

3.07% state + 1.02% local

~$2,500
-2,500 vs Philadelphia

Scranton, PA

3.07% state + 3.4% local

~$2,500
-2,500 vs Philadelphia

Bethlehem, PA

3.07% state + 1.7% local

~$2,500
-2,500 vs Philadelphia

Lower Merion, PA

3.07% state + 2.86% local

~$2,500
-2,500 vs Philadelphia

Calculate Your Full Tax Savings in Philadelphia

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

Income Tax CalculatorTaxes in PhiladelphiaFull Energy Efficient Home Credit (45L) Guide

Frequently Asked Questions

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

In Philadelphia, Pennsylvania, the energy efficient home credit (45l) can save you an estimated $5,000 per year. This includes $5,000 in federal tax savings and $0 in Pennsylvania state tax savings plus $0 in local tax savings. The national average savings is $2,500/year.

What is the Pennsylvania state income tax rate for Philadelphia residents?

Pennsylvania has a 3.07% state income tax rate. Philadelphia residents also pay a 3.75% local income tax, bringing the combined state/local rate to 6.8%. Philadelphia city wage tax: 3.75% residents, 3.44% non-residents; high combined tax burden

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

Builders or developers of new energy-efficient homes. The eligibility requirements are the same whether you live in Philadelphia or elsewhere in the U.S., as this is a federal tax credit. However, your savings amount will vary based on Pennsylvania's 3.07% 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, which could provide an additional 3.07% savings. Filing status affects your deduction limits and tax bracket.

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

Yes, Philadelphia residents benefit more because Pennsylvania's 3.07% state income tax 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 28.8% means more savings per dollar deducted.

Related Calculators

Mortgage Interest Deduction in Philadelphia

Avg savings: $3,500/year

Property Tax Deduction in Philadelphia

Avg savings: $2,200/year

Home Office Deduction in Philadelphia

Avg savings: $1,200/year

Home Energy Tax Credit in Philadelphia

Avg savings: $1,800/year

Residential Solar Tax Credit in Philadelphia

Avg savings: $7,500/year

Military Moving Expenses in Philadelphia

Avg savings: $4,000/year