Inflation Reduction Act
For Housing Developers and Building Owners
Tax Credits and Incentives
Direct-pay:
Under section 6417 of the IRA, tax exempt entities are eligible to take advantage of clean energy tax incentives through a “direct payment” in lieu of a tax credit.
This opens the door for local governments, community based organizations, and other tax-exempt entities to access the incentives needed to meet their clean energy goals.
Please visit the IRA News section of our website for resources.
Apprenticeship and prevailing wage requirements:
For a number of tax incentives, the IRA requires beneficiaries meet certain apprenticeship and prevailing wage requirements in order to access the full credit amount. Tax credits below marked with an asterisk (*) contain these requirements.
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HOMES Rebate Program
Description: A rebate program for the costs of energy efficiency retrofits that are modeled to achieve or have achieved certain energy savings levels
Amount: The Hawaiʻi State Energy Office has been allocated $34,293,520 for this program
Resources:
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High Efficiency Electric Home Rebate Program (HEEHR)
Description: To provide rebates for qualified 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)
Amount: The Hawaiʻi State Energy Office has been allocated $34,093,900 for this program
Resources:
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§45L New Energy Efficient Home Credit
Description: A credit for the construction of new homes that meet certain energy efficiency standards
Amount:
$2,500 credit for homes constructed according to ENERGY STAR Energy Efficient standard
$5,000 credit for new homes that are certified zero-energy ready homes
Multifamily projects are eligible for up to $2,500 per unit for energy star standards and $5,000 per unit for zero-energy standards
Resources:
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§179D Energy Efficient Commercial Buildings Deduction
Description: A deduction for energy efficient retrofits in existing commercial buildings that exceed certain performance standards. Tax exempt entities can pass credits through to the designer or developer of the property
Amount: $2.50 per square foot, increasing by $0.10 per square foot for each additional percent reduction in Energy Use Intensity (EUI), up to a maximum of $5 per square foot
Resources:
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§48 Energy Investment Tax Credit (ITC)*
Description: A credit for renewable energy property like solar, wind, hydropower, and battery storage
Amount: 30% tax credit
10% bonus credit for solar and wind facilities located in low income communities
20% bonus credit for solar and wind facilities that are part of a qualified low-income residential building project
Resources:
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§30C Alternative Fuel Refueling Property Credit
Description: A tax credit for electric vehicle charging infrastructure in low income or rural census tracts
Amount: 30% tax credit up to $100,000 per station for commercial property and up to $1,000 per station for residential property
Resources:
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§45 Renewable Electricity Production Tax Credit (PTC)*
Description: A credit for the production of renewable energy
Amount: Up to 1.5 cents per kilowatt-hour of energy produced
Resources:
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§48E Clean Electricity Investment Credit
Description: Technology-neutral tax credit for investment in facilities that generate clean electricity and qualified energy storage technologies.
Amount: 6% of qualified investment (basis); 30% if PWA requirements met
Resources:
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§45Y Clean Electricity Production Credit
Description: Provides a technology-neutral tax credit for production of clean electricity.
Amount: $0.03 cents/kW
Resources:
Grants, Loans and Technical Assistance
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Green and Resilient Retrofit Program (GRRP)
Description: Grants and loans for affordable housing properties to improve energy or water efficiency, indoor air quality, address climate resilience, or install low or zero emission energy technologies, including energy storage
Amount: $1 billion
Funding Source: Department of Housing and Urban Development (HUD)
Eligible entities: Owners of Section 202, Section 811, Section 8(b), or Section 236 housing
Resources
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Learn more about how to leverage the IRA to support affordable housing, by the National Housing Trust
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Check out more information on the intersection of IRA funding and affordable housing, by Enterprise
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Read through this guidebook on building decarbonization in the age of the IRA
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For an overview of what the IRA means for housing, scroll through this article from Bipartisan Policy Center
Please note, the Inflation Reduction Act is new and information is constantly evolving. This page will be continuously updated as more information is released.