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Earn Tax Credits for your Energy Ready Multifamily Building Now

Zero-energy-logoYour next multifamily building project could earn thousands of dollars in tax credits. To help the country meet its goal to decarbonize the economy by 2050, the U.S. Department of Energy's (DOE's) Zero Energy Ready Home (ZERH) program has changed its certification requirements to include all multifamily homes of all heights. As part of the Inflation Reduction Act (IRA), any multifamily home with a ZERH certification is now eligible for the New Energy Efficient Home Credit of $1,000 per dwelling unit, and up to $5,000 per unit if certain wage requirements are met.

A 2021 report from the DOE titled "Integrating Health and Energy Efficiency in Multifamily Buildings" revealed that approximately 80 million Americans currently reside in multifamily housing, with this number steadily on the rise. Additionally, data from the National Home Association of Builders in 2022 showcased a notable 9.3% increase in multifamily housing starts, surpassing the 5.7% growth seen in single-family starts. Multifamily housing serves as a crucial component of the affordable housing sector, with around 60% of multifamily housing units in the country being inhabited by low-to-moderate-income Americans. With multifamily buildings in such high demand, ignoring these tax credits is like leaving money on the table.

The Department of Energy's ZERH Multifamily program is revolutionizing sustainable living in apartments and condos. Here's why it's a win-win for residents, developers, and the environment:

Financial Benefits:

  • Tax Credits: The Inflation Reduction Act offers tax credits of $1,000 to $5,000 per dwelling unit in ZERH-certified multifamily buildings. This can significantly reduce development costs and potentially translate to lower rents.
  • Lower Utility Bills: ZERH buildings are designed to be ultra-energy-efficient, meaning residents and building management can expect substantial savings on their monthly utility bills. 

Environmental Benefits:

  • Reduced Emissions: By using less energy, ZERH buildings help combat climate change by lowering greenhouse gas emissions. 
  • Sustainable Future: The program promotes electric vehicle readiness, paving the way for a more sustainable transportation future.

Health and Comfort Benefits:

  • Improved Indoor Air Quality: ZERH buildings adhere to Indoor airPLUS standards, which can significantly improve air quality and create a healthier living environment for residents.
  • Increased Efficiency: ZERH buildings provide superior comfort with consistent temperatures and reduced drafts.

Additional Advantages:

  • Wider Availability: The program now encompasses multifamily buildings of all heights, making sustainable living more accessible.
  • Flexibility: ZERH offers three certification pathways to accommodate different project needs and budgets.

With the combined benefits of tax breaks, lower utility bills, and a healthier living environment, the DOE ZERH Multifamily program is a compelling option for developers and residents alike. It's a chance to live comfortably, sustainably, and affordably, all while contributing to a greener future.

The Simplus Building System™

Multifamily homes built with our Simplus Building System™ meet all the requirements for ZERH certification helping them qualify for tax credits. Some of the benefits of our Passive House design include:

  • 90% lower annual carbon emissions
  • 90% annual energy savings for the average home
  • Air & vapor-tight
  • Better ventilation
  • Healthier and safer indoor environment
  • More comfortable

The Simplus Building System™ incorporates prefabricated MgO (Magnesium Oxide) panels that provide additional benefits for the integrity of the building and the tenants. 

  • Fire Resistant: Naturally 1-hour fire-resistive without adding moisture-sensitive gypsum board.
  • Unaffected by Water: Does not swell, delaminate, weaken, or warp.
  • People Safe: Does not off-gas or contain toxins, silica, or asbestos.
  • Termite Proof: Completely inorganic; does not attract wood-boring insects.
  • Environmentally Safe: Energy-efficient panels are recyclable and landfill-friendly.
  • Thermally Efficient: Resistant to extreme heat or cold temperatures.
  • Mold & Fungus-Resistant: Made with naturally anti-fungal materials.

The Simplus Building System™ also helps construction savings and efficiencies for contractors, developers, and financiers. 

  • Up to 55% Faster Construction Time: Pre-assembled panels mean faster completion with fewer parts.
  • Up to 41% Labor Cost Savings: Faster & simpler construction means lower labor costs.
  • Offsite Construction: Less onsite assembly means less labor costs from Prevailing Wage requirements.
  • Accurate: Panels are computer-designed, factory-fabricated, easy and fast to install, and with less onsite waste.
  • Durability: Panels have high impact and structural strength.
  • Panelized Structures Include: Foundations, walls, floors, roofs, and decks.

Under the DOE's Zero Energy Ready Home (ZERH) program, developers can efficiently and quickly build multifamily buildings that will save money for their tenants, save labor costs, and earn tax credits between $1,000 to $5,000 per unit. To talk to us about how we can provide Zero Energy Ready Multifamily Homes that will save you money, schedule an appointment with us today.