Inflation Reduction Act for Commercial Real Estate
Commercial real estate in IRA
The federal government has recognized the crossroads between commercial real estate and energy.
25% reduction to qualify
Energy efficient commercial buildings need only reduce total energy or energy use intensity by 25% in order to obtain an energy efficient commercial building deduction. This applies to both new construction and retrofits.
Tax credits can be combined with C-PACE financing
Production Tax Credits and Investment Tax Credits align with many C-PACE-eligible projects including renewable electricity generated through solar, waste, biomass, CHP and fuel cell systems.
Additional Inflation Reduction Act Resources:
Energy justice goals
The bill encourages and advances investment in renewables to spur investment in both low income and traditional communities.
Innovation, predictability and financial flexibility are encouraged by the extension and expansion of the Production and Investment Tax Credits with features such as utimately being technology neutral, having a 10-year horizon and allowing for the one-time sale or transfer of credits.