Changing Landscape for Multifamily Project Incentives

By Ravi Malhotra
August 4, 2025 3 min read

President Trump’s administration has reshaped federal priorities, including the types and amounts of funding available for housing and clean energy.

Between Executive Orders, the One Big Beautiful Bill Act (OBBA), and successive waves of litigation, much remains unclear about the path to greening multifamily affordable housing properties.

Below is a summary of what is known so far about the various credits, rebates, and grants multifamily housing can access for clean energy projects.

Tax Credits and Deductions:

Solar Investment Tax Credit (ITC): OBBA made changes to eligibility for/availability of this credit. Qualified solar facilities must now be placed in service (PIS) no later than Dec. 31, 2027, unless such facilities begin construction within 12 months after the date of enactment of OBBA. Those facilities will have four years to be PIS. Bonus adders remain available while the ITC is in effect. Non-residential solar project owners can still receive direct pay and transfer project-related tax credits. Projects also have to meet new Foreign Entity of Concern rules for ownership, material content, and IP regulations that are not yet defined;
45L Energy Efficiency Credit: Terminated under the OBBA. Contractors may only claim the credit for constructing an energy-efficient home that is acquired by a person for use as a residence before July 1, 2026; and
179D Energy Efficiency Deduction: This deduction was also terminated. Taxpayers may only continue to claim the deduction for certain energy-efficient commercial properties if construction begins before July 1, 2027.

These are only a few examples. For the list of other terminated energy-efficiency and clean energy credits, refer to Chapter 5 of the OBBA.

Environmental Protection Agency Greenhouse Gas Reduction Fund (GGRF) and Climate Pollution Reduction Grants (CPRG):

GGRF: $20 billion of the fund’s original $27 billion is being withheld and is under litigation. Expectations are that there will be a settlement in the coming years, and these funds will flow again. The $7 billion Solar for All program for affordable community and residential solar has been in place until this week, but the EPA recently announced that it will attempt to rescind those funds as well; and
CPRG: OBBA rescinded unobligated funding to develop and implement plans to reduce greenhouse gas emissions, i.e., for clean energy projects. However, the nearly $5 billion in CPRG funds were obligated prior to OBBA, so we are waiting to see how this plays out.

U.S. Dept. of Energy Home Energy Rebate Programs: States continue to work toward implementing their whole-home-efficiency and electrification programs for housing properties; recent examples include Pennsylvania and New Jersey. However, some states haven’t received their full allocations or remain hesitant to launch due to perceived risks for reimbursement from the Department of Energy and a lack of guidance.

U.S. DOE Weatherization Assistance Program: The Bipartisan Infrastructure Law’s $3.4 billion for weatherization is still in play. However, many states are focused on single-family housing; multifamily housing is eligible in barely a handful of states. The expectation is that most states will not spend these funds in time.

U.S. Dept. of Housing and Urban Development (HUD) Green and Resilient Retrofit Program (GRRP): GRRP provided $4.8 billion in direct loans and grants for green, energy-efficient, and resilient renovation projects in HUD-assisted multifamily affordable housing. The GRRP made almost 270 awards, but the program was terminated in March. HUD has stated that only about two dozen awardees would receive their funding.

Multifamily affordable housing should stay informed on these funds and other financial resources, such as utility demand-side management programs, state-funded programs, like California’s Solar on multifamily housing, foundations, and nonprofit financiers. You can work with the National Housing and Rehabilitation Association to explore your options.

Eyes on Utility Rebates

Developing Capital Stacks with Limited Biden-Era Funding for Green Retrofits

Ravi Malhotra • May 12, 2025 3 min read

The Trump administration is working to reclaim a significant portion of the clean energy and infrastructure funding established through the Inflation Reduction Act and the Bipartisan Infrastructure Law (IRA/BIL).

The Inflation Reduction Act’s and the Multifamily Affordable Housing Market’s Future

Federal Tax Credits, Rebates, Low-Cost or Forgivable Loans and Grants are Hitting the Ground

Ravi Malhotra • January 1, 2025 5 min read

After the 2024 elections, many in the multifamily affordable housing sector worry that key Bipartisan Infrastructure Law (BIL) and Inflation Reduction Act (IRA) funds may be clawed back by the incoming administration. These funds provide tax credits, grants and other forms of incentives for green and clean energy deployment and have been crucial to closing the funding gap for multifamily affordable housing in recent years.

“Business as Usual”

Leaders in Equity Express Optimism Despite an Uncertain Future

Abram Mamet • December 1, 2024 9 min read

Any outside observer may assume some unease amongst the low-income housing industry. Buffeted on the one hand by residual stressors from the COVID-19 pandemic and on the other by the uncertain prospects of an incoming federal administration keen on cutting spending and shrinking government programs, the affordable housing landscape is experiencing an inflection point.