Inflation Reduction Act (IRA) Resources
The Inflation Reduction Act is helping to unlock over $370 billion in investments to help lower costs related to development, building occupancy, building retrofits and more. Overall, these programs help to reduce costs, accelerate private investment in every sector of the economy, strengthen supply chains for everything from critical minerals to efficient electric appliances, and create good-paying jobs and new economic opportunities for workers.
Direct Pay Transferability
Direct pay, also known as elective pay, is a provision in the Inflation Reduction Act (IRA) that allows developers to monetize three clean energy tax credits by transferring them to other taxpayers, allowing project owners and developers to sell their tax credits for cash. Project owners can also partner with non-profits, state/local/Tribal governments, publicly owned utilities, and rural cooperatives to claim the equivalent amount of tax credit in the form of direct reimbursement from the IRS.
Investment Tax Credit (ITC) and Production Tax Credit & PTC)
These two tax credits available for businesses and other entities like nonprofits and local and tribal governments can receive up to a 30% rebate for the installation of solar energy systems.
• ITC: A tax credit that reduces the federal income tax liability for a percentage of the cost of a solar system that is installed during the tax year.
• PTC: A per kilowatt-hour (kWh) tax credit for electricity generated by solar and other qualifying technologies for the first 10 years of a system’s operation.
45L Energy Efficient Home Credit
The 45L Energy Efficient Home Credit, allows eligible developers to claim a tax credit for each dwelling unit. Both single family homebuilders and multifamily developers can benefit from the 45L Credit. The Inflation Reduction Act of 2022 extended the 45L Credit for homes sold or leased during 2022 with little modification.
Commercial Property Assessed Clean Energy and Resiliency Financing (C-PACE)
C-PACE is an innovative clean energy financing tool that provides 100% upfront capital to property owners who want to upgrade their buildings with energy eciency, renewable energy, and water management systems. . Property owners receive long-term (up to 25 years), 100% financing from qualified capital providers and repay that loan in a similar way to property taxes. The unique thing about C-PACE is that the loans, which come from private lenders are assessed against a property in liens. This lien format means developers can get a loan with no money down and don’t have to worry about repaying if they sell the property (the obligation falls on whoever owns the property).
Virginia Conservation Assistance Program (VCAP)
The Virginia Conservation Assistance Program (VCAP) is an urban cost-share program that provides financial, technical and educational assistance to property owners installing eligible stormwater control practices in participating Soil & Water Conservation Districts (SWCD).
Tax Credits For Efficiency Upgrades
Tax credits that cover up to 30% of the cost for certain home-efficiency improvements are now available through the Inflation Reduction Act (IRA). Households can claim up to $1,200 in credits each year, with an additional credit of as much as $2,000 for electric heat pumps. No income limits apply, but the upgrades must meet applicable ENERGY STAR requirements.
Home Upgrade Rebates
Households could receive up to $14,000 in rebates for efficiency upgrades. Rebate amounts are determined by annual income and can be combined with income tax credits. Households with annual income below 150% of the area median income (AMI) qualify, with those at or below 80% AMI eligible for rebates up to 100% of the project cost. Find your AMI and eligibility at the U.S. Department of Housing and Urban Development's webpage: huduser.gov/portal/datasets
For more information visit: https://www.energy.gov/scep/home-energy-rebates-programs.
Virginia Conservation Assistance Program (VCAP)
The Virginia Conservation Assistance Program (VCAP) is an urban cost-share program that provides financial, technical and educational assistance to property owners installing eligible stormwater control practices in participating Soil & Water Conservation Districts (SWCD).
Property owners can install projects in areas of your yard where problems like erosion, poor drainage, or poor vegetation occur. This is an urban cost-share program that provides financial, technical and educational assistance to property owners installing eligible stormwater control practices.
Property owners can install projects in areas of your yard where problems like erosion, poor drainage, or poor vegetation occur. This is an urban cost-share program that provides financial, technical and educational assistance to property owners installing eligible stormwater control practices.
Direct Pay Transferability
The 45L Energy Efficient Home Credit, allows eligible developers to claim a tax credit for each dwelling unit. Both single family homebuilders and multifamily developers can benefit from the 45L Credit. The Inflation Reduction Act of 2022 extended the 45L Credit for homes sold or leased during 2022 with little modification.
Green and Resilient Retrofit Program (GRRP)
The GRRP Elements cohort provides gap funding to properties undergoing a recapitalization transaction that includes utility efficiency, renewable energy, carbon emission reduction and/or climate resilient measures.
Commercial Property Assessed Clean Energy and Resiliency Financing (C-PACE)
C-PACE is an innovative clean energy financing tool that provides 100% upfront capital to property owners who want to upgrade their buildings with energy efficiency, renewable energy, and water management systems. . Property owners receive long-term (up to 25 years), 100% financing from qualified capital providers and repay that loan in a similar way to property taxes. The unique thing about C-PACE is that the loans, which come from private lenders are assessed against a property in liens. This lien format means developers can get a loan with no money down and don’t have to worry about repaying if they sell the property (the obligation falls on whoever owns the property).
Virginia Conservation Assistance Program (VCAP)
The Virginia Conservation Assistance Program (VCAP) is an urban cost-share program that provides financial, technical and educational assistance to property owners installing eligible stormwater control practices in participating Soil & Water Conservation Districts (SWCD).
Property owners installing eligible Best Management Practices (BMPs) in Virginia’s participating Soil and Water Conservation Districts (SWCDs). These practices can be installed in areas of your yard where problems like erosion, excess runoff, or poor vegetation occur. Qualified sites shall be used for residential, commercial, or recreational purposes with a proposed practice that addresses a need.
Restoring problem areas, controlling and minimizing erosion, improving riparian buffer areas, promoting wildlife habitat, re-vegetating bare slopes, stabilizing drainage ways, treating stormwater runoff.
Build America Program
The Build America, Buy America Act, or BABA, requires that all iron, steel, manufactured products, and construction materials used in certain federally funded projects be produced in the United States, unless the awarding agency has issued a waiver of this requirement. It specifically requires that 100% of iron and steel, construction materials and 55% content of manufactured products used in public infrastructure projects be produced in the US.
Recipients of Federal Financial Assistance (FFA) through HUD, such as subrecipients for grants, cooperative agreements, direct assistance, loan guarantees and other financial assistance that was obligated by HUD. This includes contractors, vendors, and developers utilizing programs such as CDBG or Healthy Homes.
Direct Pay Transferability
Direct pay, also known as elective pay, is a provision in the Inflation Reduction Act (IRA) that allows tax-exempt organizations and governmental entities to access clean energy credits. This provision allows non-profits to receive a payment from the IRS that is equal to the amount of the tax credit for qualifying clean energy projects or technologies such as installing solar panels or EV charging stations at their building.
Direct pay can help nonprofits afford to install clean energy, which can help them reduce their own energy use and save money so they can spend more resources of their mission. One you identify you have a qualifying project, register it with the IRS, then file the appropriate tax form (typically a 990-T) at the end of the year to receive your rebates.
Investment Tax Credit (ITC) and Production Tax Credit (PTC)
These two tax credits available for businesses and other entities like nonprofits and local and tribal governments can receive up to a 30% rebate for the installation of solar energy systems.
• ITC: A tax credit that reduces the federal income tax liability for a percentage of the cost of a solar system that is installed during the tax year.
• PTC: A per kilowatt-hour (kWh) tax credit for electricity generated by solar and other qualifying technologies for the first 10 years of a system’s operation.
Renew America’s Nonprofits Grant Program
The U.S. Department of Energy’s (DOE) Renew America's Nonprofits program provides grants for energy efficiency projects in nonprofit buildings. This first-of-its-kind investment will reduce emissions, save energy, and lower utility costs, allowing nonprofits to redirect critical funds to mission-focused work.
Commercial Buildings Energy-Efficiency Tax Deduction (179D)
Overview: The IRS Code Section 179D was expanded under the IRA and now offers up to $5 in tax savings for every square foot of commercial buildings that have received a recent energy-saving upgrade (or retrofitted with energy-efficient technology). To qualify, a building will need to reduce its annual energy costs by more than 25% through energy-efficient improvements. Funds are allocated on a sliding scale, from 25-50%, with the $5 per square foot maximum going to buildings who demonstrate a 50% reduction in energy costs. Where the 179D could previously only be used once, it can now be claimed every three years, contingent on further building upgrades being made.
Commercial Property Assessed Clean Energy and Resiliency Financing (C-PACE)
C-PACE is an innovative clean energy financing tool that provides 100% upfront capital to property owners who want to upgrade their buildings with energy efficiency, renewable energy, and water management systems. . Property owners receive long-term (up to 25 years), 100% financing from qualified capital providers and repay that loan in a similar way to property taxes. The unique thing about C-PACE is that the loans, which come from private lenders are assessed against a property in liens. This lien format means developers can get a loan with no money down and don’t have to worry about repaying if they sell the property (the obligation falls on whoever owns the property).
Virginia Conservation Assistance Program (VCAP)
The Virginia Conservation Assistance Program (VCAP) is an urban cost-share program that provides financial, technical and educational assistance to property owners installing eligible stormwater control practices in participating Soil & Water Conservation Districts (SWCD).
Property owners installing eligible Best Management Practices (BMPs) in Virginia’s participating Soil and Water Conservation Districts (SWCDs). These practices can be installed in areas of your yard where problems like erosion, excess runoff, or poor vegetation occur. Qualified sites shall be used for residential, commercial, or recreational purposes with a proposed practice that addresses a need.
Restoring problem areas, controlling and minimizing erosion, improving riparian buffer areas, promoting wildlife habitat, re-vegetating bare slopes, stabilizing drainage ways, treating stormwater runoff.
Investment Tax Credit (ITC) and Production Tax Credit & PTC)
These two tax credits available for businesses and other entities like nonprofits and local and tribal governments can receive up to a 30% rebate for the installation of solar energy systems.
• ITC: A tax credit that reduces the federal income tax liability for a percentage of the cost of a solar system that is installed during the tax year.
• PTC: A per kilowatt-hour (kWh) tax credit for electricity generated by solar and other qualifying technologies for the first 10 years of a system’s operation.
Commercial Buildings Energy-Efficiency Tax Deduction (179D)
Overview: The IRS Code Section 179D was expanded under the IRA and now offers up to $5 in tax savings for every square foot of commercial buildings that have received a recent energy-saving upgrade (or retrofitted with energy-efficient technology). To qualify, a building will need to reduce its annual energy costs by more than 25% through energy-efficient improvements. Funds are allocated on a sliding scale, from 25-50%, with the $5 per square foot maximum going to buildings who demonstrate a 50% reduction in energy costs. Where the 179D could previously only be used once, it can now be claimed every three years, contingent on further building upgrades being made.
Commercial Property Assessed Clean Energy and Resiliency Financing (C-PACE)
C-PACE is an innovative clean energy financing tool that provides 100% upfront capital to property owners who want to upgrade their buildings with energy efficiency, renewable energy, and water management systems. . Property owners receive long-term (up to 25 years), 100% financing from qualified capital providers and repay that loan in a similar way to property taxes. The unique thing about C-PACE is that the loans, which come from private lenders are assessed against a property in liens. This lien format means developers can get a loan with no money down and don’t have to worry about repaying if they sell the property (the obligation falls on whoever owns the property).
Virginia Conservation Assistance Program (VCAP)
The Virginia Conservation Assistance Program (VCAP) is an urban cost-share program that provides financial, technical and educational assistance to property owners installing eligible stormwater control practices in participating Soil & Water Conservation Districts (SWCD).
Property owners installing eligible Best Management Practices (BMPs) in Virginia’s participating Soil and Water Conservation Districts (SWCDs). These practices can be installed in areas of your yard where problems like erosion, excess runoff, or poor vegetation occur. Qualified sites shall be used for residential, commercial, or recreational purposes with a proposed practice that addresses a need.
Restoring problem areas, controlling and minimizing erosion, improving riparian buffer areas, promoting wildlife habitat, re-vegetating bare slopes, stabilizing drainage ways, treating stormwater runoff.