Multifamily Property Owners

Page updated 3/8/2024

• The IRA offers tax credits, tax deductions, and rebate opportunities that help offset the cost of building retrofits.
  • The Energy Efficient Multifamily Homes Tax Credit applies to new construction as well as substantial reconstruction and rehabilitation for multifamily properties.
    • Base credit: $500 per unit for meeting ENERGY STAR® standards and $1,000 per unit for DOE zero-energy ready homes.
    • Bonus credit: 5 times the base amount if prevailing wage requirements are met.
  • The Energy Efficient Commercial/Multifamily Buildings Deduction provides new or retrofit multifamily properties a tax deduction between $2.50 and $5 per square foot if they meet certain energy efficiency requirements.
  • Department of Housing and Urban Development (HUD) provides grants and loans for upgrades that improve energy and water efficiency, improve air quality, implement building electrification, climate resilience and other sustainability measures such as water efficiency improvements. One program offered by the HUD is the Green and Resilient Retrofit Program (GRRP).
• State-specific programs
  • Colorado
    • The Xcel Energy Multifamily Building Efficiency Program offers a free building assessment and direct installs of energy-saving measures along with a report of energy-saving recommendations.
    • The Xcel Energy Multifamily Affordable Housing Weatherization Program provides energy efficiency support to decrease energy costs in multifamily properties that have 66% or more of units that are income-qualified.
  • Minnesota
    • The Xcel Energy Multifamily Building Efficiency Program offers a free building assessment and direct installs of energy-saving measures along with a report of energy-saving recommendations. After the assessment, implementation support and 30% bonus rebates help make building upgrades possible.
    • The Xcel Energy Income-Qualified Multifamily Building Efficiency Program offers a free building assessment and direct installs of energy-saving measures for buildings that have 66% or more of units that are income-qualified. New in 2024, these properties also qualify for 200% bonus rebates for mini split heat pumps, weatherization, efficient heating system upgrades, and more.
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  • Wisconsin
    • Focus on Energy offers rebates to multifamily building owners making upgrades to efficient HVAC systems, LED lighting, insulation, and more.