The White House has released a guidebook for navigating the climate provisions in the Inflation Reduction Act and the Fiscal Year 2023 Appropriations Bills, which were recently passed by Congress and signed into law by President Biden.

GREEN ENERGY INCENTIVES

There are new incentives and rebates for energy efficiency updates to new and existing buildings. New construction projects performing 25%-50% better than ASHRAE 90.1 are eligible to receive a corresponding, sliding-scale 179D deduction of $2.50 to $5.00 per square foot.

STRATEGIES FOR MEETING STANDARDS AND SECURING FUNDING OPPORTUNITIES

1. Design For Efficiency

Incorporate energy-efficient design principles and technologies into new construction and retrofit projects to meet the requirements for the 179D tax deduction and the Federal Building Performance Standard.

2. Seek Funding

Look into funding opportunities offered by the DOE's building energy code implementation program and the Environmental Protection Agency’s (EPA) $27 billion Greenhouse Gas Reductions fund to support buildings.

3. Collaborate

Collaborate with sustainability consultants, such as Above Green to simulate building energy performance and optimize your 179D deductions.

Does your project qualify for tax deductions under the new Climate Provisions in the Inflation Reduction Act? Sign up for a complimentary consultation to walk through the incentives and learn more about the qualification process.