The Tax Credit rewards builders for exceeding energy efficiency standards in residential units, previously offering $2,000 per home for new or renovated properties, including retroactive claims for three years. The Inflation Reduction Act of 2023 revamped this, offering $2,500 to $5,000 for homes based on energy certifications, eliminating certain restrictions for Low Income Housing Tax Credit properties. Now, claiming the credit requires energy modeling, inspections, and certification by approved professionals, promoting sustainable housing development.

The Inflation Reduction Act of 2023 is a federal tax deduction of up to $5.00 per square foot available to architects, engineers, and contractors for their work on newly constructed and renovated government buildings. Designers and builders of K-12 schools, city and county buildings, state universities, and federal and military buildings are taking advantage of this lucrative tax incentive for energy efficient HVAC, lighting, and building envelope scope of work. Commercial property owners are also able to claim this valuable tax incentive. Prior to 2023, the program offered tax deduction of up to $1.80 per square foot.