Multifamily property owners and developers in Utah have access to a layered set of multifamily energy incentives that can significantly reduce the cost of energy-efficient construction and upgrades. These programs apply statewide, they cover a wide range of improvements, and they can be combined to maximize savings. The challenge is not availability; it is knowing what exists and how to capture it before the deadlines close.
Utility Rebates: Immediate Savings on Upgrades You Are Already Planning
Rocky Mountain Power provides cash rebates for energy-efficient upgrades to multifamily properties with four or more units. Eligible improvements include appliances, building shell enhancements, HVAC systems, lighting, weatherization, and water heating. Rebates scale with projected energy savings, and properties serving lower-income residents qualify for higher incentive levels. Property owners should contact the program before starting any installations to confirm eligibility and rebate structures.
Enbridge Gas offers its ThermWise program, which provides cash rebates for builders of new multifamily construction who install high-efficiency equipment and build to ENERGY STAR standards. Projects with four or more connected units qualify. Builders working with a certified Home Energy Rater may be eligible for both stand-alone and whole-home rebates.
The 45L Tax Credit: Up to $5,000 Per Unit for New Construction
The 45L New Energy Efficient Home Credit is one of the strongest federal tools available to multifamily developers right now. Eligible contractors who build ENERGY STAR or Zero Energy Ready Home standards can claim tax credits of up to $5,000/unit. At the baseline level, multifamily projects qualify at $500 to $1,000/unit, with substantially higher credits when construction meets prevailing wage requirements.
This credit applies to units acquired before July 1, 2026. Developers with projects currently in progress need to verify that their timelines against that deadline now.
The 179D Deduction Per-Square-Foot Savings That Add Up Fast
The Energy Efficient Commercial Buildings Deduction (Section 179D) gives commercial and multifamily building owners a tax deduction for new construction and major renovations that install qualifying energy-saving systems. Eligible improvements include the building envelope, HVAC, interior lighting, and hot water/service water heating systems. The deduction amount ranges based on the level of energy savings achieved (a minimum of 25% is required) and whether the project meets prevailing wage and registered apprenticeship requirements. Projects that satisfy all criteria can qualify for up to $5.81 per square foot for the 2025 tax year, with amounts adjusted for inflation annually.
For a 100,000-square-foot multifamily project meeting the full threshold in 2025, that translates into a potential deduction of up to $581,000, a number that belongs in every developer’s pro forma from day one. Design firms working on projects for tax-exempt or government-owned buildings may also be eligible to have the deduction allocated to them as the designer.
Important deadline: Under the One Big Beautiful Bill Act (P.L. 119-21), Section 179D will not apply to property where construction begins after June 30, 2026. Developers and design teams should factor this cutoff into project planning immediately.
C-PACE Financing: Long-Term Capital With No Money Down
Utah’s C-PACE program gives multifamily and commercial property owners access to long-term, low-cost private financing for energy efficiency upgrades, renewable energy installations, and water conservation improvements.. Financing is secured by a tax assessment on the property, so if the current owner sells, the lien transfers with the building. Loan terms can extend up to 30 years.
Financing can sometimes cover up to 100% of project costs with no money down, making C-PACE particularly useful for projects where upfront capital is a constraint. In Utah, developers who design and and construct new buildings using equipment that exceeds commercial energy efficiency code requirements are also eligible, not just owners of existing projects.
Stack the Programs, Multiply the Savings
The most effective approach is not selecting one incentive. It is layering every applicable program to drive down net project cost. A multifamily developer building a new energy-efficient property could potentially combine:
- Rocky Mountain Power or Enbridge Gas utility rebates
- The 45L Tax Credit per qualifying unit
- The 179D per-square-foot deduction
- C-PACE financing to cover upfront costs
When these incentives are mapped out early in the design phase, the economics of building to a higher efficiency standard shift dramatically in the developer’s face. The incremental cost of sustainable construction shrinks. The long-term value of the asset grows.
The Savings do Not Come Automatically
These programs require pre-approval in many cases, documentation of qualifying upgrades, and in some instances verification by a certified energy rater. Understanding which programs apply to a specific project, structuring investments to maximize eligibility, and managing compliance requirements is where the complexity lies.
That is exactly where the KE Andrews Site Selection & Incentives Advisory practice comes in. KE Andrews works with multifamily owners and developers to identify every applicable incentive, structure projects for maximum eligibility, and manage the documentation and compliance process from start to finish. Getting that work right is the difference between a credit that gets captured and one that gets left on the table.