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.

For more information, see our fact sheets:

IRS Guidance On Clean Energy Tax Incentives (May 2023)

Inflation Reduction Act of 2022 - Revenue Provisions

 

Staff Contact
DD-Oct2019 - contact Duane J. Desiderio 
 Senior Vice President & Counsel
RM-Oct2019 - contact Ryan P. McCormick
 Senior Vice President & Counsel