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Inflation Reduction Act for Commercial Real Estate

Top Takeaways

  1. Commercial real estate in IRA

    The federal government has recognized the crossroads between commercial real estate and energy.

  2. 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.

  3. 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.

  1. Energy justice goals

    The bill encourages and advances investment in renewables to spur investment in both low income and traditional  communities.

  2. 10 years

    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.