1. Inflation Reduction Act (IRA) 2022:
   • Quote: “The Inflation Reduction Act provides a tax credit of up to 30% for energy-efficient building improvements and renewable energy installations.”
   • Source: FACT SHEET: How the Inflation Reduction Act’s Tax Incentives Are Ensuring All Americans Benefit from the Growth of the Clean Energy Economy
   • Use Case: Retrofitting an office building in New York City with solar panels and efficient HVAC systems.
   • Result: Qualifies for up to 30% tax credits, reducing upfront costs by $300,000 on a $1 million project. Additionally, New York’s NY-Sun program offers further incentives, providing up to $100,000 in additional funding, resulting in total savings of $400,000.
2. Energy-Efficient Commercial Buildings Deduction (Section 179D):
   • Quote: “Section 179D provides a tax deduction of up to $1.80 per square foot for energy-efficient improvements to commercial buildings.”
   • Source: Energy efficient commercial buildings deduction
   • Use Case: Upgrading lighting and insulation in a 100,000 sq. ft. warehouse in Texas in 2022.
   • Result: A tax deduction of $180,000, reducing taxable income. Additionally, in the local market there may be incentives, for example in the state of Texas based on Inflation Reduction Act Rebate, businesses making energy-efficient upgrades can qualify for additional rebates or incentives.
3. State and Local Incentives:
   • Quote: “Various states and local governments provide grants, rebates, and incentives for green construction projects to promote sustainability and energy efficiency.”
   • Source: Database of State Incentives for Renewables & Efficiency (DSIRE)
   • Use Case: Constructing a LEED-certified apartment building in San Francisco with a $5 million budget.
   • Result: Receives $500,000 in state rebates and $200,000 in local incentives from California’s Green Building Initiative, reducing overall costs by 14%. Additionally, benefits from expedited permitting processes and reduced fees, saving another $50,000.
4. Federal Tax Credits for Energy Star Buildings:
   • Quote: “Federal tax credits are available for buildings that meet Energy Star standards, encouraging energy efficiency and sustainability.”
   • Source: Energy Star Buildings
   • Use Case: Renovating a 50,000 sq. ft. office building in Chicago to meet Energy Star criteria.
   • Result: Receives a $100,000 federal tax credit. Additionally, Illinois’ Energy Efficient Building Act provides a grant of $25,000 for achieving Energy Star certification, resulting in total savings of $125,000 and reducing energy costs by 20%, saving $40,000 annually.

These Federal and Regional incentives encourage the adoption of green construction practices, leading to significant cost savings, enhanced building performance, and reduced environmental impact