Incentives for Multifamily Properties

• Benefit: Offers a tax credit of up to 30% of the cost (capped at $100,000 per charger) for installing EV charging stations.

• Eligibility: Applies to businesses and tax-exempt entities installing charging infrastructure in eligible locations.

• Duration: Valid through December 31, 2032.

• Benefit: Provides a 30% federal tax credit for the cost of installing solar energy systems.

• Eligibility: Available to residential and commercial properties, including multifamily housing.

• Duration: Applicable for systems installed through 2032.

• Benefit: Distributes $7 billion to expand low-income solar programs, including for multifamily housing.

• Purpose: Provides subsidies, low-cost capital, and technical assistance to projects serving disadvantaged communities.

This federal tax deduction allows property owners, including multifamily properties, to claim up to $1.80 per square foot for the installation of energy-efficient lighting, HVAC systems, and building envelope improvements. To qualify for the deduction, the property must meet specific energy performance standards set by the IRS. Lighting upgrades, such as LED retrofits or lighting controls, can be eligible under this program.

The EECBG provides federal funds to local and tribal governments for energy-saving projects, including lighting upgrades. While this program typically focuses on municipalities, multifamily property owners within qualifying areas may benefit through partnerships with local governments. Lighting upgrades can be part of broader energy-saving projects.

The IRA includes provisions for home energy efficiency improvements, including lighting upgrades. Through programs like the High-Efficiency Electric Home Rebate Act (HEEHRA), multifamily property owners may receive rebates for qualifying lighting projects when upgrading to energy-efficient systems like LEDs or installing advanced controls. These rebates are aimed at making energy-efficient improvements more affordable for multifamily and low-income housing.

The 45L tax credit provides up to $2,000 per unit for new homes or substantial renovations that meet certain energy efficiency standards, such as meeting or exceeding the ENERGY STAR certification. Though this incentive primarily targets new construction, multifamily property owners who are undertaking significant renovations and upgrades can use it to reduce the costs of energy-efficient lighting systems.

The C-PACE program, while primarily a financing tool, allows property owners to access capital for energy-efficient upgrades, including outdoor lighting. It’s available for commercial and multifamily properties. This financing program enables owners to repay the funds through property taxes, which makes it a potentially attractive option for upgrading lighting without upfront capital costs.

While these are more commonly associated with HVAC systems, insulation, and other major systems, lighting upgrades in both residential and commercial properties may be eligible for tax credits as part of a comprehensive energy-efficiency improvement project. For multifamily buildings, these credits can be applied to lighting upgrades that meet energy performance standards.