Sustainability Incentives for New Construction

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

• 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

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

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:
  • https://flipbook.focusonenergy.com/view/428912865/55/
  • https://focusonenergy.com/business/renewables#rebate-info

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

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

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

*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