Inflation Reduction Act and Commercial Real Estate: Incentives for Modernizing Properties; Reducing Tax Burdens
Course Details
- smart_display Format
On-Demand
- signal_cellular_alt Difficulty Level
Intermediate
- work Practice Area
Real Property - Finance
- event Date
Tuesday, February 18, 2025
- schedule Time
1:00 p.m. ET./10:00 a.m. PT
- timer Program Length
90 minutes
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This 90-minute webinar is eligible in most states for 1.5 CLE credits.
This CLE webinar will analyze the key features of the Inflation Reduction Act (IRA) that have been particularly relevant to the commercial real estate industry over the past couple of years prior to the recent executive order from President Trump. The panel will discuss the production tax credit (PTC) and the investment tax credit (ITC) and how these incentives have been successfully utilized by the real estate industry. In addition, the panel will review the 179D Deduction, which encourages energy-efficient building improvements, the credits available for electric vehicle (EV) charging stations, and more. The panel will also discuss the potential effects of President Trump's new executive order on clean energy projects going forward.
With a background in business and taxation law, Mr. Flis is a public finance and energy tax attorney who partners with public and private entities to accomplish their project goals. Specifically, he spearheads the firm’s Inflation Reduction Act practice and manages bond and economic development matters. Mr. Flis is familiar with each stage of funding for all types of projects and has been involved in large, complex transactions. He is highly experienced on many of the Inflation Reduction Act incentives and tax credits that are available to both public and private entities and is helping to lead clients through all stages of their clean energy projects, from a project’s inception all the way through claiming the appropriate tax credits after a project is placed into service.
Mr. Barry focuses on helping municipalities, developers, and businesses access and implement economic development tools, including Tax Increment Financing, Community Reinvestment Areas, Enterprise Zone administration, and New Community Authorities. With a deep interest in economic development, Mr. Barry assists in structuring transactions that foster community revitalization and business growth. He also contributes to research and compliance efforts related to the Inflation Reduction Act, aiding clients in understanding utilizing federal incentives for renewable energy and sustainability projects.
The IRA passed in August 2022, and it included approximately $369 billion in funding for a number of strategies to reduce carbon emissions and combat climate change. Over two years into its implementation, there are key incentives real estate counsel should be aware of that have a direct benefit on commercial real estate development and finance.
The IRA made a number of changes to the ITC and PTC which can benefit real estate owners and developers, and there are "bonus" credit levels for property located in certain geographic areas. The IRA also revived a credit for "qualified alternative fuel vehicle refueling property" (i.e., EV charging stations), and there are additional indirect benefits for the real estate industry due to the increased manufacturing that has resulted from many new IRA incentives. Energy-efficient commercial buildings and homes are also eligible for increased tax incentives because of the IRA.
Listen as our authoritative panel discusses key aspects of the IRA that have impacted commercial property owners and their development strategies.
- Overview of climate change-related provisions in the IRA
- ITC and PTC
- Bonus tax credits
- Wage and apprenticeship requirements
- Transferability and direct pay
- Tax credit for EV charging stations
- Location requirements
- 179D Deduction for energy-efficient improvements
- Increased manufacturing and impact on real estate
- Credit transferability provisions and opportunities for both buyers and sellers of the credits
- Potential effects on clean energy projects going forward
The panel will review these and other important issues:
- What are the "bonus" credits that the IRA makes available, and how can real estate investors benefit?
- What incentives does the IRA provide property owners to develop EV charging stations?
- How was Section 179D revised under the IRA, and what kinds of improvements are eligible for immediate deduction?
- How do the credit transferability provisions work and what are the opportunities for both buyers and sellers of the credits?
