Inflation Reduction Act for Commercial Real Estate
Top Takeaways
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Commercial real estate in IRA
The federal government has recognized the crossroads between commercial real estate and energy.
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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.
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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:
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Energy justice goals
The bill encourages and advances investment in renewables to spur investment in both low income and traditional communities.
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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.