Energy Incentives for Housing
The largest federal climate change bill in U.S. history – the Inflation Reduction Act (IRA) – was signed into law in August 2022 with $369 billion in investments in climate and clean energy programs over the next decade.
For multifamily developers and property owners of affordable housing, some resources are available now and others will be available in the coming years to:
Add solar panels
Install heat pumps
Improve sealing around doors and windows
Install Energy Star appliances
And more
IRA Resource Library for Developers & Property Owners
WSHFC staff will update this page periodically as incentive administrators release new guidance on IRA implementation. This library is intended to be a place for affordable housing developers and property owners to start learning more about federal incentives, not an exhaustive list.
The Commission does not administer the following incentives, but we encourage multifamily affordable housing developers and property owners to explore them and see where they may be eligible.
Affordable Housing & IRA Overview
The IRA includes specific funds to:
Reduce the harmful effects of climate change in low-income communities
More equitably share the benefits of electrification among those communities, including for residents of affordable housing
New opportunities for LIHTC developers to take advantage of renewable energy tax credits and rebates
Inflation Reduction Act Database (iratracker.org)
Clean Energy for All | The White House
More information on IRA for housing:
5/12/2023 IRA Bootcamps | National Housing Trust
11/2/2022 Benefits of the Inflation Reduction Act for Affordable Housing | Novogradac (novoco.com)
Solar Tax Credits for Builders (including LIHTC) & Homeowners
Tax credits extended through the IRA include Section 48 renewable energy tax credit which is a 30% base tax credit for solar, plus competitive adders for LIHTC projects.
Internal Revenue Service (IRS) administered
Available now through 2032
No longer removed from eligible basis reduction
Direct pay available
4/2/2023 IRS Guidance Releases Energy Community Bonus Credit Amounts Under the Inflation Reduction Act of 2022 | Novogradac (novoco.com)
3/14/2023 March 14, 2023: Update on IRA's Energy Adders for Affordable Housing (novoco.com)
2/13/2023 Treasury and IRS provide guidance on energy projects for low-income communities | Internal Revenue Service
Energy Efficient New Construction Tax Credits for Builders & Owners
The 45L tax credit for energy efficient new home construction was extended through the IRA.
Internal Revenue Service (IRS) administered
Available now through 2032; requirements vary by housing sector
No longer removed from eligible basis reduction
Direct pay available
4/1/2023 45L Tax Credits for Zero Energy Ready Homes | Department of Energy
3/14/2023 Update on IRA's Energy Adders for Affordable Housing (novoco.com)
Energy Rebates for Multifamily & Single-Family Builders
Administered by Washington State Department of Commerce (DOC)
Will likely be available starting in 2024; currently in design
4/6/2023 Federal Funding for Buildings - Washington State Department of Commerce
HUD Green & Resilient Retrofit Program for Eligible HUD-Assisted Properties
U.S. Dept. of Housing and Urban Development (HUD) administered
Program will be available 2024 through 2027
HUD will offer office hours to respond to questions on the program every Wednesday between May 24 and June 28, 2023, from 3 – 4 pm ET at https://zoom.us/j/99199273258; no registration necessary
5/12/2023 HUD Notice on the Green & Resilient Retrofit Program - Issued May 11, 2023
4/7/2023 IRA Section 30002 - Affordable Housing Energy / Water Efficiency and Climate Resilience Grant Program - Inflation Reduction Act Tracker (iratracker.org)
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