Energy Incentives for Housing

The largest federal climate change bill in U.S. history – the Inflation Reduction Act (IRA) – was signed into law in August 2022 with $369 billion in investments in climate and clean energy programs over the next decade.

For multifamily developers and property owners of affordable housing, some resources are available now and others will be available in the coming years to:

Add solar panels

Install heat pumps

Improve sealing around doors and windows

Install Energy Star appliances

And more

Watch the Energy Incentives and the 2021 Energy Code panel at the 2023 Housing WA Conference (recorded 10/4/2023): Session 4: Energy Incentives & the 2021 State Energy Code - YouTube

IRA Resource Library for Developers & Property Owners

WSHFC staff will update this page periodically as incentive administrators release new guidance on IRA implementation. This library is intended to be a place for affordable housing developers and property owners to start learning more about federal incentives, not an exhaustive list.

The Commission does not administer the following incentives, but we encourage multifamily affordable housing developers and property owners to explore them and see where they may be eligible.

Affordable Housing & IRA Overview

The IRA includes specific funds to:

Reduce the harmful effects of climate change in low-income communities

More equitably share the benefits of electrification among those communities, including for residents of affordable housing

New opportunities for LIHTC developers to take advantage of renewable energy tax credits and rebates

Inflation Reduction Act Database (iratracker.org)

Clean Energy for All | The White House

More information on IRA for affordable housing:

11/13/2023 How to Stack IRA Resources | National Housing Trust

9/25/2023 IRA Toolkit | National Housing Trust

3/6/2023 Inflation Reduction Act and Affordable Housing: New Guidance on Maximizing Benefits | Enterprise Community Partners

11/2/2022 Benefits of the Inflation Reduction Act for Affordable Housing | Novogradac (novoco.com)

8/16/2022 NHT Policy Brief: Key Provisions in the Inflation Reduction Act for Affordable Housing | National Housing Trust

Solar Tax Credits for Builders (including LIHTC) & Homeowners

Tax credits extended through the IRA include Section 48 renewable energy tax credit which is a 30% base tax credit for solar, plus competitive adders for LIHTC projects.

Internal Revenue Service (IRS) administered

Available now through 2032

No longer removed from eligible basis reduction

Direct pay available
9/25/2023 Low-Income Communities Bonus Credit Program | Department of Energy
9/25/2023 U.S. Dept. of the Treasury, IRS Release Final Rules and Guidance on Investing in America Program to Spur Clean Energy Investments in Underserved Communities | U.S. Department of the Treasury
4/2/2023 IRS Guidance Releases Energy Community Bonus Credit Amounts Under the Inflation Reduction Act of 2022 | Novogradac (novoco.com)
3/14/2023 March 14, 2023: Update on IRA's Energy Adders for Affordable Housing (novoco.com)
2/13/2023 Treasury and IRS provide guidance on energy projects for low-income communities | Internal Revenue Service