Businesses, Nonprofits
Government-funded
Varies
Amount varies
Tax Credit
Reduces tax liability
Rolling
No fixed cutoff
Annual tax return
Claim with year-end filing
Moderate
File with tax return
Allows businesses to deduct up to $5.65/sq ft for commercial buildings achieving significant energy savings through improvements to HVAC, lighting, and building envelope systems. IRA expanded the deduction and allowed non-profits and government to allocate it.
Do I qualify?
Answer the questions below for a rules-based self-assessment of your fit for this program. This is informational — final determinations are made by the administering agency.
1.Deduction of $0.50–$5.65 per sq ft based on % energy savings over ASHRAE baseline
2.Full $5.65/sq ft requires 50%+ energy savings and meeting prevailing wage requirements
3.Eligible improvements: interior lighting, HVAC/hot water, building envelope
4.Tax-exempt entities (nonprofits, gov) can now allocate deduction to the designer of record
5.Energy model must be certified by qualified third party using IRS-approved software
CDFI Fund · United States
Attracts private investment into low-income communities by allowing investors to receive a 39% federal tax credit over 7 years on investments made through certified Community Development Entities (CDEs).
LPO · United States
Offers federal loan guarantees for innovative clean energy projects that struggle to access conventional financing. Supports first-of-kind commercial-scale projects in renewable energy, storage, advanced nuclear, and industrial decarbonization.
DOE · United States
30% investment tax credit for qualifying advanced energy manufacturing projects, including EV components, solar and wind equipment, energy storage, and grid infrastructure. Part of the Inflation Reduction Act's $10 billion allocation to reindustrialize domestic clean energy supply chains.