4/27 – Peak Load Management and Demand Response Panel Panelists: Andy Anderson, CEO, WatchWire Gregg Fischer – Founder and CEO, Fischer Energy Molly Dee-Ramasamy – Director, Deep Carbon Reduction Group – JB&B Matthew McCue – Account Executive at CPower …Read full post
What the New Climate Bill Means for Businesses
On August 7th, the U.S. Senate passed the Inflation Reduction Act. The House passed the bill August 12th, preparing it for signing by President Biden. The bill includes the largest-ever investment in combating climate change, as well as a number of incentives and tax credits to spur emissions-free energy, electric vehicles, nuclear power and clean hydrogen. Democrats say the Act will allow the United States to lower emissions 40 percent below 2005 levels by the end of the 2020s.
So, what impacts will the bill have on companies, specifically their facilities? In this article, we’ll explore the various tax credits and incentives that you should be aware of. We’ll also explore how an energy and sustainability management platform can help your company meet the requirements to get said tax credits and incentives.
4 Features of the Climate Bill – And Their Impact on Your Business
1. Tax Credits for Multifamily Residential Buildings
Realty trusts and developers, take note: The Inflation Reduction Act will provide credits of $2,500 per unit for meeting ENERGY STAR energy efficiency requirements or $5,000 per unit for meeting Department of Energy (DOE) Zero Energy Ready requirements. Developers can also take both 45L and LIHTC for affordable housing projects.
2. Electric Vehicle (EV) Incentives
Considering making the vehicles in your company’s fleet electric? The climate bill expands the existing 30D green vehicle tax incentive through 2032 for a $7,500 tax credit on purchases of qualifying EVs. It also includes a new tax credit for green commercial vehicles and invests $1B in clean heavy-duty EVs for states, municipalities, and non-profit schools.
3. Clean Electricity Incentives
The Act expands and extends clean power technologies including the Investment Tax Credit (ITC) and the Production Tax Credit (PTC) for renewable energy projects like solar and wind, respectively. Meanwhile, for construction beginning after 2024, the incentives are replaced by new tech-neutral incentives based on emissions reduction and cover new technologies like energy storage and microgrid controllers. In addition, $40 billion in loans will be available until 2026 from the DOE to support the commercial deployment of new clean energy technologies.
4. Tax Deductions for Energy Efficient Commercial Buildings
If your company is considering building new, energy efficient facilities, the climate bill provides new incentives for doing so, expanding the existing incentive from $1.80 per square foot to a sliding scale of $2.50- $5.00 per square foot, which includes a new pathway for existing building retrofits to access the deduction. In addition, real estate investment trusts (REITs) will now be eligible for deductions.
How To Increase Your Chances of Receiving Tax Credits/Deductions/Incentives
An energy and sustainability management platform can assist your company by:
- Helping you meet ENERGY STAR and DOE energy efficiency requirements. An energy and sustainability management platform will collect, organize, analyze, and audit all your energy, utility, and sustainability data, allowing you to determine if there are any inefficiencies in your buildings. From there, you can implement the appropriate energy efficiency measures and projects. The platform will then allow you to measure and verify those projects for effectiveness, with the ultimate goal of meeting specific requirements.
- Guiding you through the process of procuring and deploying clean energy projects such as distributed energy resources (DERs), and then measuring and verifying them for efficiency and effectiveness.
WatchWire is an integrated energy and sustainability management platform that can easily perform all the functions listed above. To discover more about WatchWire and its capabilities, you can visit our website, blog, or resource library, request a demo, or follow us on LinkedIn, Instagram, or Twitter to keep up-to-date on the latest energy and sustainability insights, news, and resources.
4/27 – 10:45am to 11:45am - Sustainability Management: Issues and Opportunities Panelists: Andy Anderson, CEO, WatchWire Alex Gulagaci, Director of Engineering, RXR Lauren Moss, Chief Sustainability Officer, Vornado John Forester, Vice President Real Estate Services, Energy and Sustainability RMR Group…Read full post
What Is Sustainability Software? Sustainability software is a solution that helps companies manage all environmental data, such as emissions from their energy use, climate information, biodiversity, waste, and finances. Sustainability software is used as a tool for organizations to effectively…Read full post
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