KENTUCKY STATE INCENTIVES

Under the federal §45L tax credit, multifamily homes constructed after 2020 and certified as ENERGY STAR Single Family New Homes Program are eligible for a $500 tax credit. If constructed with prevailing wages, the credit increases to $2,500. Additionally, homes certified as DOE Zero Energy Ready Homes are eligible for a $1,000 tax credit, increasing to $5,000 with prevailing wages. To qualify, homes must meet specific energy efficiency standards. For more information, property owners can visit the Kentucky 45L page

Kentucky Power offers the Commercial Energy Solutions Program (CESP), which provides energy audits and incentives for qualifying commercial customers, including multifamily properties. Incentives are available for lighting upgrades, HVAC equipment, and food service equipment. The program aims to roll out over a three-year period. To learn more and apply, property owners can visit the CESP page.

The Kentucky Home Energy Rebates Program, administered by the Kentucky Energy and Environment Cabinet, will provide rebates for energy efficiency improvements within multifamily homes. Eligible improvements may include lighting upgrades, appliance and HVAC system replacements, insulation, air sealing, and associated electrical panel or wiring upgrades. Rebates will be based on estimated energy savings, household income level, and total project cost. The program is expected to launch in spring 2025. Property owners can sign up for email updates and learn more at the Kentucky Home Energy Rebates Program page

Louisville Gas and Electric (LG&E) and Kentucky Utilities (KU) provide cash rebates for commercial and industrial customers, including multifamily property owners, who make energy-saving improvements to their existing facilities. Rebates are available for energy-efficient upgrades such as lighting, HVAC systems, and food service equipment. The program offers both prescriptive and custom incentives, with support for engineering studies and project verification. To apply, property owners can visit the Business Rebates page and submit an application online or by phone

LG&E and KU's WeCare program offers energy-efficient upgrades for qualifying apartment building owners with tenants at or below 200% of the federal poverty level. Property owners can receive incentives of up to 50% of the incremental cost for whole-building projects, excluding doors and windows. To participate, property owners can visit the WeCare for Apartment Building Owners page and sign up online.