receive a base credit , but they would have to meet prevailing wages and apprenticeship requirements to receive a bonus credit .
Specifically , firms can quintuple the base credit if they pay all contractors and subcontractors prevailing wages . Projects would also have to be staffed by apprentices ( 5 percent of labor hours must be performed by apprentices for projects commencing construction in 2022 , 10 percent in 2023 , and 15 percent thereafter , with a minimum of one apprentice for each contractor or subcontractor employing at least four workers . Exemptions would be permitted if apprentices are unavailable .
Energy Efficient Commercial Buildings Deduction
Beginning in 2022 , the base credit for buildings with four or more stories that exceed 25 percent of ASHRAE standards in effect three years before a building is placed into service would be $ 0.50 per square foot for energy savings . It would increase by $ 0.02 per square foot for every percentage point by which energy savings exceed the 25 percent baseline threshold , up to $ 1.00 per square foot . Bonus amounts , as described above , are available for taxpayers meeting applicable labor requirements .
Additionally , taxpayers would be able to take a deduction for energy efficient lighting , HVAC and building envelope costs placed in service as part of a retrofit . The value of the deduction would be based upon how much energy savings is achieved . A minimum 25 percent reduction would be required to realize a $ 0.50 per square foot gain in the base credit .
The base credit would be increased by $ 0.02 per square foot for each additional percentage point in energy savings , up to $ 1.00 per square foot . Bonus amounts , as described above , are available for taxpayers meeting applicable labor requirements . We have long sought a provision to address investment in building energy retrofits that result in significant energy savings relative to building ’ s own baseline energy performance to be eligible for the credit . The provision would be effective through 2031 .
New Energy Efficient Home Credit
The proposal would extend the New Energy Efficient Home Credit ( which applies to buildings of three or fewer stories ) through 2031 . For multifamily units acquired after 2022 , a base credit of $ 500 is provided for units that participate in the ENERGY STAR Multifamily New Construction Program while meeting both national and regional program requirements . It is , however , unclear whether units will decide to participate in this program . A credit of $ 2,500 per unit is available if the building meets the applicable labor requirements described above . Finally , a base credit of $ 1,000 is available to multifamily homes certified as zero energy ready under the Department of Energy Zero Energy Ready Home Program .
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Longmont
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203 S . Main St . Ste . B www . fastsigns . com / 569 www . aamdhq . org NOV / DEC 2021 TRENDS | 59