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

Watch the Energy Incentives and the 2021 Energy Code panel at the 2023 Housing WA Conference (recorded 10/4/2023): Session 4: Energy Incentives & the 2021 State Energy Code - YouTube

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 (

Clean Energy for All | The White House

More information on IRA for affordable housing:

11/13/2023 How to Stack IRA Resources | National Housing Trust

9/25/2023 IRA Toolkit | National Housing Trust

3/6/2023 Inflation Reduction Act and Affordable Housing: New Guidance on Maximizing Benefits | Enterprise Community Partners

11/2/2022 Benefits of the Inflation Reduction Act for Affordable Housing | Novogradac (

8/16/2022 NHT Policy Brief: Key Provisions in the Inflation Reduction Act for Affordable Housing | National Housing Trust

Solar Tax CreditsSolar 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
9/25/2023 Low-Income Communities Bonus Credit Program | Department of Energy
9/25/2023 U.S. Dept. of the Treasury, IRS Release Final Rules and Guidance on Investing in America Program to Spur Clean Energy Investments in Underserved Communities | U.S. Department of the Treasury
4/2/2023 IRS Guidance Releases Energy Community Bonus Credit Amounts Under the Inflation Reduction Act of 2022 | Novogradac (
3/14/2023 March 14, 2023: Update on IRA's Energy Adders for Affordable Housing (
2/13/2023 Treasury and IRS provide guidance on energy projects for low-income communities | Internal Revenue Service

Energy Efficient New Construction Tax CreditsEnergy 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 (

Energy Rebates for Multifamily & Single-Family BuildersEnergy Rebates for Multifamily & Single-Family Builders

Administered by Washington State Department of Commerce (DOC)

Program currently in design; funds expected to be available 2024 through 2031

Rebates split between two programs - High-Efficiency Electric Home Rebate Program and Home Energy Rebate Program
7/27/2023 Home Energy Rebate Programs Guidance | Department of Energy
4/6/2023 Federal Funding for Buildings - Washington State Department of Commerce

HUD GreenHUD Green & Resilient Retrofit Program for Eligible HUD-Assisted Properties

U.S. Dept. of Housing and Urban Development (HUD) administered

Grants and loans available for new and existing HUD Project-Based Rental Assistance (PBRA) properties

Application waves open now through Spring 2024
9/13/2023 HUD Announces Funding to Support Energy Efficiency and Climate Resilience in Multifamily Assisted Housing Properties As Part of President Biden’s Investing in America Agenda | / U.S. Department of Housing and Urban Development (HUD)
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 (



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