Policy Issues

President Biden signed the Inflation Reduction Act of 2022 (IRA) into law on August 16, 2022. The legislation will invest almost $370 billion over the next 10 years to tackle the climate crisis. A number of the IRA’s changes to the federal tax code may help the U.S. real estate sector reduce its carbon footprint, particularly:

• A deduction to help make commercial and multifamily buildings more energy efficient (Section 179D);

• A credit to encourage investments in renewable energy generation and other “clean energy” technologies sited at buildings and other facilities (Section 48);

• A credit to incentivize the installation of EV charging stations (Section 30C); and

• A credit to incentivize energy-efficient new residential construction, including multifamily (Section 45L).

The Real Estate Roundtable has encouraged Congress for a number of years to make clean energy tax incentives more usable for building owners, managers, and financiers—and more impactful to help meet national GHG reduction goals. Below is our summary of key IRA provisions.

For more information, see our fact sheets below.

Inflation Reduction Act — IRS Guidance On Clean Energy Tax Incentives - Fact Sheet (March 23, 2023)

Inflation Reduction Act of 2022 -  “Clean Energy” Tax Incentives Relevant to U.S. Real Estate - Fact Sheet (Jan. 5, 2023)

Inflation Reduction Act of 2022 - Revenue Provisions - Fact Sheet