Federal tax incentives for energy efficiency upgrades are no longer available, reports Robert Freedman of Smart Cities Dive.
The Republican Domestic Policy Bill eliminated the energy-efficient commercial buildings deduction, funding building owners to exchange HVAC systems, lights and building envelopes, and encouraged adaptive reuse of office and other commercial buildings.
According to Paul Williams, who covers the tormented real estate industry, “In many foreclosure scenarios, including office buildings, warehouses, or mixed-use commercial real estate, green virtue signaling was not the only energy efficiency upgrade.
As Friedman explains, “Private financial institutions and municipalities are not well positioned to replace the deduction, as only federal programs can create owners of standardization, allowing changes that could be exposed to compliance risk.” Credit losses could undermine enthusiasm for office conversion.
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