Building Efficiency & RenewableEnergyThe IRA offerstaxcredits,taxdeductions, and rebate opportunities that help offset the cost of building retrofits. TheEnergyEfficientMultifamilyHomesTaxCreditapplies to new construction as well as substantial reconstruction and rehabilitation formultifamilyproperties.
Formultifamily, base amounts are $500 per unit forEnergyStar and $1000 per unit for zero-energyProvides ataxdeduction for the cost ofenergyefficiency improvements to commercial buildings, installed as part of the building envelope; interior lighting systems; or the heating, cooling, ventilation, and hot water systems.
On July 4, 2025, President Trump signed the OB3 Act into law. It makes significant changes totaxbenefits pre-dating and modified by the Biden-era Inflation Reduction Act (IRA) forenergy-related projects.1 This fact sheet summarizes how the OB3 Act treats solar, storage,energyefficiency, and similar projects in commercial andmultifamilyresidential real estate. (Foran overview of real ...
A building owner may be eligible for multiple incentives. For example, the IRA eliminates the basis reduction for "stacking" (or combining) the ITC, section 45Lcreditsand the 42 Low-Income HousingTaxCredit, so builders, developers, and contractors can unlock the full potential of thesetaxcreditswhen investing in underserved communities.
Furthermore, visual representations like the one above help us fully grasp the concept of Alternative Energy Tax Credits For Multifamily Buildingirs.
The 179D commercial buildingsenergy-efficiencytaxdeduction enables building owners to claim ataxdeduction for installing qualifying systems.
That is changing quickly. The passage of the landmark Inflation Reduction Act of 2022 (IRA), together with improvements in both the solar panel market and incentives for renewableenergy, make adding solar a potentially important opportunity for new and existing Low-Income HousingTaxCreditsand othermultifamilyproperties.
