Housing Developers and Building Owners

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Tax Incentives

A provision to the IRA now allows tax-exempt entities to participate in programs that utilize tax incentives. These entities can opt for a direct payment in lieu of a tax credit.

Home Energy, Performance-Based, Whole-House Rebates (HOMES)

High Efficiency Electric Home Rebate Act (HEEHRA)

Description: Offers rebates to reimburse homeowners for home electrification upgrades

$8,000 for heat pump heating, ventilation and air conditioning (HVAC)

$1,750 for heat pump water heater

$840 for an electric stove/cooktop

$2,500 for electric wiring

$4,000 for breaker boxes

$1,600 for weatherization (insulation, air sealing, ventilation)

Hawaiʻi State Energy Office given $34,093,900 for rebate program

Resources:

State and Tribe Allocations for HEEHR Rebate Program

Rewiring America: High-Efficiency Electric Home Rebate Act Info

Section 30C: Alternative Fuel Refueling Property Credit

Description: Provides a tax credit for alternative fuel vehicle refueling and charging property in low-income and rural areas. Alternative fuels include electricity, ethanol, natural gas, hydrogen, biodiesel, and others.

Amount: 30% tax credit up to $100,000 per station for commercial property and up to $1,000 per station for residential property

Eligible entities: The qualified alternative fuel vehicle refueling property must be for clean burning fuels, as defined in the statute, and must be located in low-income or rural areas.

Resources:

National Law Review: EV Charging Station Tax Credits are Back

U.S. Department of Energy Webpage

Section 45: Renewable Energy Production Tax Credit

Description: Provides a tax credit for production of electricity from renewable sources for projects beginning construction before 1/1/25.

Amount

Base amount: $0.03/kW, inflation adjusted
Credit is increased by 5 times for projects meeting prevailing wage and registered apprenticeship requirements
Credit is increased by 10% if the project meets certain domestic content requirements for steel, iron, and manufactured products.
Credit is increased by 10% if located in an energy community.

Eligible entities: Facilities generating electricity from wind, biomass, geothermal, solar, small irrigation, landfill and trash, hydropower, and marine and hydrokinetic renewable energy.

Resources:

EPA Renewable Electricity Production Tax Credit Info

Section 45L: New Energy Efficient Home Credit

Description: Provides a tax credit for construction of new energy efficient homes.

Amount

Base: $2,500 for new homes meeting Energy Star standards; $5,000 for certified zero-energy ready homes. For multifamily, base amounts are $500 per unit for Energy Star and $1000 per unit for zero-energy ready.

Bonus: For multifamily homes, 5 times the base amount if prevailing wage requirements are met.

Resources:

Section 48: Energy Investment Tax Credit

Description: Provides a tax credit for investment in renewable energy projects. Projects must begin construction before 1/1/25.

Amount:

Base credit of 6%
Credit is increased by 5 times for projects meeting prevailing wage and registered apprenticeship requirements
Credit is increased by up to 10 percentage points for projects meeting certain domestic content requirements for steel, iron, and manufactured products.
Credit is increased by up to 10 percentage points if located in an energy community

Eligible recipients: Fuel cell, solar, geothermal, small wind, energy storage, biogas, microgrid controllers, and combined heat and power properties

Resources:

Office of Energy Efficiency and Renewable Energy

Section 179D: Energy Efficient Commercial Buildings Deduction

Description: Provides a tax deduction for energy efficiency improvements to commercial buildings, such as improvements to interior lighting; heating, cooling, ventilation, and hot water; and building envelope. Tax exempt entities can pass credits through to the designer or developer of the property

Amount:

Base credit: $0.50-$1 per square foot, depending on increase in efficiency, with deduction over four year periods capped at $1 per square foot. Inflation adjusted. Alternatively, taxpayers can deduct adjusted basis in “qualified retrofit plans” that reduce a building’s energy use intensity by at least 25%.
5 times the base amount if the project meets prevailing wage and registered apprenticeship requirements.

Eligibility: Owners and long-term lessees of commercial buildings. Designers of energy efficient building property (architects, engineers). Tax-exempt owners of commercial properties, pending Treasury guidance on deduction allocation.

Resources:

Grants, Loans, and Technical Assistance

Green and Resilient Retrofit Program (GRRP)

Description: Grants and loans to HUD-assisted properties to improve energy or water efficiency; enhance indoor air quality or sustainability; implement the use of zero-emission electricity generation, low-emission building materials or processes, energy storage, or building electrification strategies; or make the properties more resilient to climate impacts.

Amount: $1 billion

Funding Source: Office of Housing and Urban Development (HUD)

Eligibility: Properties receiving assistance under Section 8 Project Based Rental Assistance (PBRA), Section 202, and Section 811 programs are eligible for participation, as well as properties converting to Section 8 PBRA through the Rental Assistance Demonstration (RAD).

Resources:

Information from Enterprise