• In 2033, the tax benefit will drop to 26% • In 2034, it drops further to 24% Things to keep in mind:
Other requirements for the solar investment tax incentives The IRA includes some other provisions that need to be adopted state by state. Those provisions may help some homeowners get rebates and credits for upgrading to energy-efficient appliances and other upgrades. Those won’t be available for several months, likely mid-2023, but owners and investors can start investing in solar panels and get the credits for 2022. Large commercial solar projects (1 MW + or approximately 5,000 200-Watt panels) will need to pay prevailing wages and meet apprenticeship requirements to get the full 30% tax incentive credit; if they choose not to meet those criteria, the maximum tax break is just 6%. This is designed to encourage job growth and longevity in solar. But obviously, these conditions are for HUGE projects, such as solar farms, not the installation needed for even a 10-unit apartment building. Small projects (less than 1 MW), like small and mid- size apartment buildings, qualify for the 30% tax credit without those requirements, which makes them far more affordable for the typical housing provider investor. The Act, which is regarded as the largest investment in renewable energy in the US, also includes funds that can be used to improve the energy efficiency of affordable multifamily housing, including housing that is subsidized by HUD and Low Income Housing Tax Credits.
OWNERS AND INVESTORS CAN START INVESTING IN SOLAR PANELS AND GET THE CREDITS FOR 2022.
• Owners and operators of Section 8, Section 202, and Section 236 properties, to improve energy or water efficiency, indoor air quality or sustainability • Implement the use of low-emission technologies, materials, or processes, including zero-emission electricity generation, energy storage or building electrification • Address climate resilience • For energy and water benchmarking
An analysis by the National Housing Trust identified more than $25 billion in the Act that could benefit affordable multifamily housing. The Act includes $1 billion for HUD’s multifamily housing programs, including:
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