Sustainability Incentives for New Construction
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American Council for an Energy Efficient Economy
Federal Incentives for Energy Efficiency
45L: New Energy Efficient Home Tax Credit Available
$2,500 Credit
- For building or purchasing an ENERGY STAR Single-Family New Homes certified house. Requirements available here: http://tinyurl.com/2msd5hba
- $5,000 Credit
- For building or purchasing a Zero Energy Ready Home. Requirements available here: http://tinyurl.com/5n8a4xbj
Wisconsin Focus on Energy Energy Efficiency Incentives
Become a Focus on Energy Participating Builder
As a participating builder, you'll be partnered with an Energy Building Performance Consultant (BPC) to make sure your homes meet the highest standards for energy efficiency, combustion safety, comfort, and durability—ensuring your homes meet program requirements. In addition, you will also enjoy other benefits, including:
- Financial incentives on homes 30% or more efficient than existing building codes.
- Third-party verification that homes exceed energy efficiency standards.
- Documentation for federal tax credits ($2,500 to $5,000 per home. Refer to section 45L of the tax code).
- Technical reporting including heat loss calcs, UDC energy code compliance, HVAC equipment sizing, and energy cost by building component.
- Marketing and promotional materials including a builder listing on the Focus website.
- Fewer customer callbacks
More information at: https://focusonenergy.com/builders
Purchase a Focus on Energy Certified New Home
Benefits include:
- Dedicated Builders – Focus on Energy rewards builders for constructing homes to be as efficient as possible, so you know your new home will be built to save energy for years to come.
- Lower Energy Bills – A Focus on Energy Certified New Home is at least 30% more efficient than homes built to code, which means higher performance and lower energy costs.
- Comfort – Reducing exterior air infiltration provides superior indoor air quality, minimizes drafts, and improves comfort. Sealed combustion equipment and carbon monoxide detectors ensure combustion safety and whole-house ventilation provides proper air circulation.
- Proof of Quality – Your Building Performance Consultant conducts two site visits to review construction and overall performance. Testing is done to ensure the proper performance of the air sealing, insulation, ventilation and combustion equipment. Your Building Performance Consultant will then certify your new home.
- Resale Advantage – A Focus on Energy New Home Certification adds resale value if you decide to put your home on the market.
More information at: https://focusonenergy.com/residential/new-home-certification
Affordable Housing Solar Rebate
| Type of Housing | Rebate | Max Rebate |
|---|---|---|
| Affordable Housing - New Construction | $1,250 / kW | $8,750 |
- New construction.
- One, two, or three-unit homes.
- Owner-occupied.
- System must meet current Focus on Energy requirements for solar electric systems.
Solar electric system rebates are available on select qualifying solar electric equipment. Trade Ally contractors focused on renewables can help you earn Focus on Energy rebates.
Access Solar Focus on Energy Rebates Here:
https://focusonenergy.com/business/renewables#rebate-info
City of Madison Stormwater Fee Adjustment
Customers may, upon application, be entitled to a reduction in their stormwater utility fees if they submit proper documentation of the installation and proper operation of a structural stormwater control measure or measures. This credit shall be recalculated annually.
- Rain gardens with two feet of engineered soil depth may receive both a percent of the 80% pollution reduction charge credit and conveyance system credit based on the percent of the 10-year 24-hour storm managed and the amount of TSS captured on an average annual basis.
- Rain gardens without engineered soil may receive a conveyance system credit based on the percent of the 10-year 24-hour storm managed.
- Rainwater harvesting (rain barrel) systems shall be eligible for a conveyance system credit based on the size of the rain barrel and roof area captured. The formula for this credit is a reduction in contributing area by 1 SF for every 2.5 gallons of storage.
Application and additional information available here: https://www.cityofmadison.com/engineering/stormwater/stormwater-bill/stormwater-fee-adjustment
Federal Incentives for Energy Efficiency
45L: New Energy Efficient Home Tax Credit Available for Townhomes
$2,500 Credit
- For building or purchasing an ENERGY STAR Single-Family New Homes certified townhome. Requirements available here: http://tinyurl.com/2msd5hba
- $5,000 Credit
- For building or purchasing a Zero Energy Ready townhome. Requirements available here: http://tinyurl.com/5n8a4xbj
45L: New Energy Efficient Home Tax Credit Available for Multifamily
$500 Credit Per Unit
- For construction of an ENERGY STAR Multifamily New Construction certified building (more than 2 units and more than 50% of space dedicated to residential use). Requirements available here: http://tinyurl.com/3y9j3ktz
The credit increases to $2500 per unit if prevailing wages and fringe benefits are paid to involved contractors.
- Prevailing Wages by Occupation: https://www.procore.com/library/prevailing-wages-wisconsin
- $1,000 Credit Per Unit
- For the construction of a DOE Zero Energy Ready Multifamily building (more than 2 units and more than 50% of space dedicated to residential use). Requirements available here: http://tinyurl.com/4zrxf74a
The credit increases to $5000 per unit if prevailing wages and fringe benefits are paid to involved contractors.
- Prevailing Wages by Occupation: https://www.procore.com/library/prevailing-wages-wisconsin
179D Commercial Buildings Energy-Efficiency Tax Deductions Available
| Compliance Path | Qualifying Property | Savings Requirement* | Tax Deduction | ||
|---|---|---|---|---|---|
| taxable years before 2021 | taxable year beginning 2021 | taxable year beginning 2022 | |||
| Fully Qualifying Property | 50% | $1.80/ft² | $1.82/ft² | $1.88/ft² | |
| Partially Qualifying Property | Envelope | 10% | $0.60/ft² | $0.61/ft² | $0.63/ft² |
| HVAC and HW | 15% | ||||
| Lighting | 25% | ||||
| Interim Lighting Rule | 25%–40% lower lighting power density (50% for warehouses) | $0.60/ft²*** | $0.61/ft²*** | $0.63/ft²*** | |
View IRS Guidance Here: www.irs.gov/pub/irs-utl/irc-179d-energy-efficient.pdf
Wisconsin Focus on Energy Energy Efficiency Incentives
Multifamily New Construction
Focus on Energy uses the original or value-engineered design as a starting point and prepares alternative design options, each progressively more efficient.
Use the New Construction Online Tool to Get Started: https://www.focusonenergync.com/
Energy Design Assistance
Building projects over 5,000 sq. ft. in the early stages of planning and design can maximize energy savings and incentive amounts by participating in Energy Design Assistance (EDA).
Through EDA, you’ll receive a free, customized, whole-building analysis of energy-saving design options. Focus on Energy prepares multiple design options, each progressively more efficient, so that building owners and design teams can customize dozens of design elements to maximize energy efficiency opportunities while balancing financial considerations.
In addition to the building owner’s incentive which is calculated based on the energy savings of the entire facility, design teams may also qualify for financial assistance to offset their staffing costs for EDA participation.
New Construction Interest Form: https://eda.focusonenergync.com/focusonenergy
Renewable Energy Incentives for Multifamily Buildings
Federal Tax Credits for Renewable Energy
There are two tax credits available for businesses and other entities like nonprofits and local and tribal governments that purchase renewable energy systems (solar, wind, geothermal):
- The investment tax credit (ITC) is a tax credit that reduces the federal income tax liability for a percentage of the cost of a solar system that is installed during the tax year.
- https://www.irs.gov/forms-pubs/about-form-3468
- The production tax credit (PTC) is a per kilowatt-hour (kWh) tax credit for electricity generated by solar and other qualifying technologies for the first 10 years of a system’s operation. It reduces the federal income tax liability and is adjusted annually for inflation.
- https://www.irs.gov/forms-pubs/about-form-8835
Wisconsin Focus on Solar Electric Systems
- Rebates for Solar Electic Systems are between $1,000 - $50,000 depending on system size (5kW - 500+kW)
- Affordable Housing Solar Rebates add $1,250 per kW up to $8,750
- New construction.
- Three-unit homes.
- Owner-occupied.
- System must meet current Focus on Energy requirements for solar electric systems.
Solar electric system rebates are available on select qualifying solar electric equipment. Trade Ally contractors focused on renewables can help you earn Focus on Energy rebates.
- View Rebates Here:
For more information:
Daneclimateaction.org/what-you-can-do/federal-funding-for-business
https://www.energy.gov/eere/solar/federal-solar-tax-credits-businesses
City of Madison Stormwater Fee Adjustment
Customers may, upon application, be entitled to a reduction in their stormwater utility fees if they submit proper documentation of the installation and proper operation of a structural stormwater control measure or measures. This credit shall be recalculated annually.
- Rain gardens with two feet of engineered soil depth may receive both a percent of the 80% pollution reduction charge credit and conveyance system credit based on the percent of the 10-year 24-hour storm managed and the amount of TSS captured on an average annual basis.
- Rain gardens without engineered soil may receive a conveyance system credit based on the percent of the 10-year 24-hour storm managed.
- Rainwater harvesting (rain barrel) systems shall be eligible for a conveyance system credit based on the size of the rain barrel and roof area captured. The formula for this credit is a reduction in contributing area by 1 SF for every 2.5 gallons of storage.
Application and additional information available here: https://www.cityofmadison.com/engineering/stormwater/stormwater-bill/stormwater-fee-adjustment
Transit Oriented Development Overlay District
Residential Dwelling Unit Bonuses
Building Height Bonuses
No Parking Minimum
- Zone Maps: https://www.cityofmadison.com/dpced/planning/documents/TOD_Overlay_Maps.pdf
Detailed Ordinance: http://tinyurl.com/2z3dabw2
Federal Incentives for Energy Efficiency
179D Commercial Buildings Energy-Efficiency Tax Deductions Available
| Compliance Path | Qualifying Property | Savings Requirement* | Tax Deduction | ||
|---|---|---|---|---|---|
| taxable years before 2021 | taxable year beginning 2021 | taxable year beginning 2022 | |||
| Fully Qualifying Property | 50% | $1.80/ft² | $1.82/ft² | $1.88/ft² | |
| Partially Qualifying Property | Envelope | 10% | $0.60/ft² | $0.61/ft² | $0.63/ft² |
| HVAC and HW | 15% | ||||
| Lighting | 25% | ||||
| Interim Lighting Rule | 25%–40% lower lighting power density (50% for warehouses) | $0.60/ft²*** | $0.61/ft²*** | $0.63/ft²*** | |
View IRS Guidance Here: www.irs.gov/pub/irs-utl/irc-179d-energy-efficient.pdf
Wisconsin Focus on Energy Energy Efficiency Incentives
Energy Design Assistance
Building projects over 5,000 sq. ft. in the early stages of planning and design can maximize energy savings and incentive amounts by participating in Energy Design Assistance (EDA).
Through EDA, you’ll receive a free, customized, whole-building analysis of energy-saving design options. Focus on Energy prepares multiple design options, each progressively more efficient, so that building owners and design teams can customize dozens of design elements to maximize energy efficiency opportunities while balancing financial considerations.
In addition to the building owner’s incentive which is calculated based on the energy savings of the entire facility, design teams may also qualify for financial assistance to offset their staffing costs for EDA participation.
New Construction Interest Form: https://eda.focusonenergync.com/focusonenergy
Focus on Energy New Construction Business Incentives
View Here: https://focusonenergy.com/business/new-construction
Renewable Energy Incentives for Commercial Buildings
Federal Tax Credits for Renewable Energy
There are two tax credits available for businesses and other entities like nonprofits and local and tribal governments that purchase renewable energy systems (solar, wind, geothermal):
- The investment tax credit (ITC) is a tax credit that reduces the federal income tax liability for a percentage of the cost of a solar system that is installed during the tax year.
- https://www.irs.gov/forms-pubs/about-form-3468
- The production tax credit (PTC) is a per kilowatt-hour (kWh) tax credit for electricity generated by solar and other qualifying technologies for the first 10 years of a system’s operation. It reduces the federal income tax liability and is adjusted annually for inflation.
- https://www.irs.gov/forms-pubs/about-form-8835
Wisconsin Focus on Energy Solar Electric Systems
Business Customer Solar PV Rebates
| System Size in kW (DC) | Rebate per kW (DC) | Max Rebate |
|---|---|---|
| Up to 5 kW | $200 | $1,000 |
| 5-10 kW | $1,000 + $150 per kW above 5 kW | $1,750 |
| 10-100 kW | $1,750 + $125 per kW above 10 kW | $13,000 |
| 100-300 kW | $13,000 + $100 per kW above 100 kW | $33,000 |
| 300-500 kW | $33,000 + $85 per kW above 300 kW | $50,000 |
| 500+ kW | $50,000 + $0 per kW above 500 kW | $50,000 |
*Solar PV systems 500 kW and above will be capped at the maximum rebate of $50,000.
- Agricultural producers (business customers) will qualify for an rebate match up to $10,000. Agricultural producers are defined as “businesses engaged in the production of grain, livestock, milk, poultry, fruits, vegetables, bees and honey, fish, shellfish, or other common agricultural products including greenhouses”.
City of Madison Stormwater Fee Adjustment
Customers may, upon application, be entitled to a reduction in their stormwater utility fees if they submit proper documentation of the installation and proper operation of a structural stormwater control measure or measures. This credit shall be recalculated annually.
- Rain gardens with two feet of engineered soil depth may receive both a percent of the 80% pollution reduction charge credit and conveyance system credit based on the percent of the 10-year 24-hour storm managed and the amount of TSS captured on an average annual basis.
- Rain gardens without engineered soil may receive a conveyance system credit based on the percent of the 10-year 24-hour storm managed.
- Rainwater harvesting (rain barrel) systems shall be eligible for a conveyance system credit based on the size of the rain barrel and roof area captured. The formula for this credit is a reduction in contributing area by 1 SF for every 2.5 gallons of storage.
Application and additional information are available here: https://www.cityofmadison.com/engineering/stormwater/stormwater-bill/stormwater-fee-adjustment
Transit Oriented Development Overlay District
Building Height Bonuses
No Parking Minimum
- Zone Maps: https://www.cityofmadison.com/dpced/planning/documents/TOD_Overlay_Maps.pdf
- Detailed Ordinance: http://tinyurl.com/2z3dabw2
