By Cherry Bekaert
5
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The podcast currently has 14 episodes available.
The Inflation Reduction Act (IRA) drastically changed the 45L Energy Efficient Home Credit (Section 45L) and the Section 179D Energy Efficient Commercial Buildings Deduction (Section 179D) quantities and requirements, thus allowing more opportunities for home builders and multi-family developers constructing energy-efficient homes to earn money back. As a result of the major changes in the Section 45L tax credit, there are new qualifications that businesses must meet to benefit from the energy tax opportunities.
In this episode of the Real Estate and Construction Podcast, Mark Cooter, Real Estate, Construction & Hospitality Industry Practice Leader, and Ron Wainwright, Energy Tax Credits & Incentives Leader, discuss how the real estate and construction industry can best utilize the Section 45L tax credit.
This conversation includes:
Related Guidance
On January 29, 2023, new requirements for prevailing wage and apprenticeship, as outlined in the Inflation Reduction Act of 2022 (IRA), went into effect. These requirements aim to create good paying jobs in the clean energy space by offering enhanced tax credits to participating taxpayers.
The IRA is critical in providing good paying jobs through offering enhanced tax benefits for a range of clean energy and green energy projects to taxpayers. The Davis-Bacon Act ensures prevailing wages are paid to workers on such projects and that registered apprentices are utilized, in accordance with the IRA.
By pairing climate investment with creating good paying jobs, the IRA’s unparalleled investments to fight the climate crisis will help improve job quality in clean energy industries and incentivize the expansion of related workforce training pathways.
Taxpayers that wish to take advantage of enhanced clean energy tax benefits must establish that all laborers and mechanics are paid the applicable prevailing wage, including fringe benefits, for all hours performing construction, and in some cases alteration or repair, on the site of a qualified facility.
Mark Cooter, Real Estate & Construction Leader, welcomes Ron Wainwright, Tax Credits & Incentives Advisory Partner, on Cherry Bekaert’s Real Estate and Construction podcast to learn more about prevailing wage and apprenticeship requirements.
On this podcast the team will unpack the background of the IRA and answer the following questions:
The Inflation Reduction Act (IRA) was signed into law in August 2022 and creates huge tax credit incentive savings for real estate and construction groups that prioritize clean energy. One tax provision of the IRA was the 45L Energy Efficient Home Credit.
Mark Cooter, Cherry Bekaert’s Real Estate and Construction Practice Leader, invites Ron Wainwright, Strategic Tax Partner and Leader of the Firm’s Energy Tax Credits & Incentives Practice within the Tax Credits and Incentives Advisory group, and Bill Harbeson, a manager at Cherry Bekaert, will discuss how 45L has changed with the IRA and how.
The Podcast Covers:
Related Thought Leadership:
The recently passed Inflation Reduction Act (“IRA”) on the 179D deduction is incredibly important and lucrative new legislation for the Real Estate and Construction industry. The 179D is a tax deduction to incentivize builders and building designers to create energy-efficient commercial buildings. The IRA increased the maximum tax deduction from $1.80 per square foot to $5.00 per square foot.
Mark Cooter, Cherry Bekaert’s Real Estate and Construction Practice Leader, invites Ron Wainwright, Strategic Tax Partner and Leader of the Firm’s Energy Practice within the Tax Credits and Incentives Advisory group, and Bill Harbeson, a manager at Cherry Bekaert, to discuss the impacts of this legislation as well as how to qualify and what to look for in a 179D provider to take advantage of this beneficial tax deduction.
The Podcast Covers:
Subscribe today for further information from Cherry Bekaert on the different benefits and tax credits the real estate and construction companies can qualify for and receive.
Join Jason Hoard, Tax Partner, as he moderates a panel of Cherry Bekaert professionals on the opportunities and pitfalls in OZ structuring. The panel will discuss a variety of topics including how an OZ investment will fit into your overall investment plan, the implications of withdrawing from a Qualified OZ fund, uncovering opportunities with debt including basis issues, and the benefits of carried interest.
Listen to the other podcasts in our OZ Fund Series:
Join Ron Wainwright, Partner and Leader of the Firm’s Credits & Accounting Methods practice, and Peter Byford, NMTC Program Senior Manager with Tax Advantage Group by Cherry Bekaert, for a discussion on capital formation. They will analyze the traditional OZ capital stack, highlight the potential synergy with New Market Tax Credits and other additional credits, and examine the implications of social impact investing.
Listen to the other podcasts in our OZ Fund Series:
Join Michael Elliot, Tax Director, and Russ Nash, former Tax Senior Manager, for a deep dive on the five basic tests required for a business to qualify as a QOZB:
Listen to the other podcasts in our OZ Fund Series:
Join Daniel Metzel, Tax Partner, and Greg Davis, Tax Partner, for an overview of the requirements of establishing and operating a Qualified Opportunity Zone Business ("QOZB"). They will break down the intent of the final regulations, the pros, and cons of a one tier versus a two-tier structure, and the applicable testing restrictions.
Listen to the other podcasts in our OZ Fund Series:
Join Mark Cooter, Partner and Real Estate & Construction Industry Practice Leader, and Shannon Makosiej, Tax Senior Manager, for a discussion on how the newly released Opportunity Zone (“OZ”) final regulations impact real estate specifically. They will highlight the recent law changes finalized by the U.S. Treasury which resolve some ambiguity and provide clarity around issues such as the substantial improvement requirement, original use and triple net leases.
Listen to the other podcasts in our OZ Fund Series:
Join Richard Schneider, Partner and Chairman of Cherry Bekaert’s OZ Task Force Team and Polly Hoxha, Senior Manager and Cherry Bekaert’s OZ Champion for Washington D.C., as they kick off our six-part series on the Opportunity Zone ("OZ") regulations which will address fund level topics.
Our first podcast series focused on OZ investor incentives and provided insight on key topics that investors need to know. You can catch up with our Investor Series podcast here.
Stay tuned for the remaining five podcasts in our OZ Fund Series:
The podcast currently has 14 episodes available.