Real estate and construction companies call on Congress to maintain tax incentives

More than 350 companies and organizations are calling on the U.S. Congress to protect the buildings-related clean energy and energy efficiency tax incentives currently in federal law.

In a letter sent to members of Congress on Jan. 15, 355 companies and organizations highlighted the positive impact that the tax incentives are having by driving investments and economic activity. Repealing them would amount to a tax increase on many construction projects and exacerbate an already challenging environment in the real estate and housing sectors, the letter states.

"Eliminating these existing tax incentives would mean even stronger headwinds, slowing growth and job creation across the building trades," the letter says. "Many companies have hired employees, modified business plans and even changed product lines with the expectation of increased market demand from these federal tax incentives; repealing them now would create widespread uncertainty and chaos while effectively imposing tax increases on those using the incentives. There are thousands of projects underway right now across the country that have been planned around the incentives."

The letter, which was organized by USGBC, was signed by companies and organizations across the country-from engineering and architecture firms to manufacturers and builders-who are seeing new investment and activity as a result of the incentives, which were expanded in 2022 under the Inflation Reduction Act (IRA).

The letter calls for maintaining the Sec. 45L tax credit for homebuilders building more energy-efficient homes; the Sec. 25C tax credit for homeowners to make efficiency improvements to their homes, such as upgrading their heating and cooling systems or adding insulation; the Sec. 179D deduction for commercial building efficiency improvements; the Sec. 48/48E Investment Tax Credit (ITC) for companies making clean electricity improvements such as geothermal systems and rooftop solar; and the Sec. 30C tax credit for alternative vehicle charging and pumping infrastructure (which includes a range of technologies).

All of the incentives were created with bipartisan support long before the IRA. The letter was prompted by calls from some members of Congress to repeal IRA incentives.

Review the letter.

Learn more about helping defend the tax incentives

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