Unlocking Major Tax Credits for Your Energy Efficient Builds
Disclaimer: EsTech Global provides this information about available tax credits and incentives for energy efficient construction for general informational purposes only. We are not tax professionals, and this should not be considered tax advice. Please consult a qualified tax advisor to determine your specific eligibility for any credits or deductions.
At EsTech Global, our mission is to deliver attainable, ultra-efficient single and multi-family eco-communities that redefine modern living. Through our pioneering “Tighter Envelope“, “Indoor Air Quality“, and “Renewable Energy Systems” approach, we are helping lead the vital transition to sustainable, net-zero housing.
And thanks to recent federal legislation like the Inflation Reduction Act, there has never been a better time for homeowners, developers, builders, non-profits and municipalities to join the green housing revolution. Lucrative tax credits and incentives are now available to make energy efficient, renewable construction more affordable across the board.
As a prospective EsTech client, here’s a breakdown of the key incentives you can leverage for your eco-conscious real estate investment or construction project:
The retooled Energy Efficient Home Improvement Credit is a game-changer for making your residence more energy efficient and sustainable. From 2023 through 2032, you can claim an annual 30% tax credit on expenses like:
This credit has NO lifetime cap – so you can “refresh” the full annual amounts annually for renovations or a new high-performance home. Renewable power like solar, wind and geothermal systems also qualify for an unlimited 30% Residential Clean Energy Credit.
As developers of eco-friendly multi-family, mixed-use and residential communities, you can capitalize on multiple valuable incentives like:
The Reinstated 45L Tax Credit: Earn $2,000 to $5,000 per unit certified to the latest ENERGY STAR or DOE Zero Energy Ready Home standards. For a 100-unit project meeting prevailing wage rules, that’s up to $500,000 in credits!
The 179D Deduction: Deduct up to $5 per sq ft of energy efficient construction across the residential, commercial and common areas of your development based on the efficiency level achieved.
Renewable Energy Credits: The Investment Tax Credit allows you to deduct 30% of the installed costs of solar power systems, helping make renewables more viable. EV charging stations and other green initiatives may also qualify.
State/Local Incentives: Depending on your location, you could layer on additional property tax abatements, renewable energy rebates, green financing programs and more.
Constructing state-of-the-art, energy efficient and zero-energy capable homes is EsTech’s sweet spot. As a builder partnering with us, you can claim:
The 45L Tax Credit: Earn up to $5,000 per home you certify to rigorous Department of Energy Zero Energy Ready standards developed in coordination with Building America research.
The 25C Credit: Your buyers can benefit from the new annual 30% tax credit for efficiency upgrades you install like insulation, windows, doors and electric heat pumps.
Renewable Incentives: Install rooftop solar, geothermal or other onsite power and storage to qualify your projects for 25D and ITC tax credits up to 30% of the system cost.
Whether developing new multi-family affordable housing, campus buildings or community facilities, your tax-exempt nonprofit organization can access powerful incentives:
The 179D Deduction: Although nonprofits don’t pay taxes directly, you can allocate the 179D deduction of up to $5/sq ft to the designers, engineers or contractors serving your energy efficient projects.
Renewable Tax Credits: While unusable by your nonprofit, the 25D residential and ITC commercial credits can be transferred or monetized to reduce the installed costs of solar, wind and battery systems.
Alternative Financing: Take advantage of low-interest loans, qualified energy conservation bonds, and other preferential financing avenues earmarked for nonprofits embracing eco-friendly real estate.
As cities, towns and other municipalities seek to lead by example in sustainable development and construction, substantial financial assistance is available:
The 179D Deduction: Governmental entities can allocate 179D tax deductions to the private designers involved in constructing or renovating energy efficient municipal buildings, schools, and other public facilities.
Grant Programs: Federal and state grant funding is widely accessible for municipality-led green housing, community resilience, climate action, and related sustainability initiatives.
Municipal Bonds: Unique options like qualified energy conservation bonds allow municipalities to finance renewable power, energy efficiency upgrades and green community programs through low-cost tax-exempt bonds.
Public-Private Partnerships: Collaborating with EsTech and other private developers can open the door to additional joint incentives like Opportunity Zones for sustainable urban revitalization.
At EsTech Global, we have comprehensive expertise to ensure you benefit from every applicable tax credit, rebate program and creative financing option as we partner on your energy efficient project. The resources are readily available – it’s just a matter of taking full advantage!
The age of affordable, climate-resilient and sustainable housing has arrived. Whether a homeowner, developer, builder, nonprofit or municipality, lucrative incentives make it possible to reduce your environmental footprint without breaking the bank.
Join us in ushering in this green real estate revolution! Reach out to EsTech Global today to start planning your energy efficient housing solution. Together, we can create a brighter, lower-carbon future for generations to come.
Disclaimer: EsTech Global provides this information about available tax credits and incentives for energy efficient construction for general informational purposes only. We are not tax professionals, and this should not be considered tax advice. Please consult a qualified tax advisor to determine your specific eligibility for any credits or deductions.
Quadrant Homes chose to move forward with a sustainable, luxury spec home. The Model home was built to showcase a future sustainable neighborhood.
