Energy-saving renovation trends

1、Update on Tax Incentives for Energy-Efficient Commercial Buildings in the United States: Although not a new policy released in the past week, the Energy Efficient Commercial Buildings Deduction (EECBD) issued by the Internal Revenue Service (IRS) will continue to provide incentives for eligible building renovations in 2025. The main contents include: 

（1）Applicable objects: Owners of commercial buildings that meet standards, as well as designers who carry out energy-saving renovations for buildings belonging to specific government or other tax-exempt entities. 

（2）Core requirement: After the renovation, the total annual energy and electricity costs of the building should be reduced by more than 25% compared to the reference standard (currently mainly based on ASHRAE 90.1-2019). 

（3）Tax incentive level: By 2025, for projects that meet the current wage and apprenticeship requirements, the maximum deduction amount can reach up to $5.81 per square foot. This is an important economic incentive measure. 

2、California advances building energy efficiency standards: The California Energy Commission (CEC) has launched a new round of public consultation for its "2025 Building Energy Efficiency Standards", with the consultation period ending on September 6, 2024. These standards are expected to come into effect on January 1, 2026, although they were not newly released last week, their continuous advancement indicates that California's requirements for building energy efficiency will be even more stringent. These standards will apply to residential, non-residential, as well as hotel and motel buildings.

New construction and renovation policies

1、Central Business District Reorganization in Boston: On September 18th, the Boston Planning and Development Agency (BPDA) approved a zoning adjustment plan named "Plan: Downtown". This plan aims to encourage residential development and allows for the construction of taller buildings in specific areas (up to 700 feet in some areas). The main contents of this plan include: 

（1）Facility transformation facilitation: Simplified the approval process for converting office buildings into residences, eliminating outdated planning requirements such as courtyards, saving a significant amount of time for the project. 

（2）Support for affordable housing: Large residential projects are required to provide a certain percentage of affordable housing (at least 17% of the units, with 3% meeting the rental conditions stipulated in Article 8), which can be built within the same building or within a half-mile radius of the project. 

（3）Historical preservation and shadow considerations: The plan claims to have taken into account the protection of historical sites and shadow regulations (aimed at preventing public spaces such as Boston Park from being overly obscured), but this has also raised concerns among some citizens and lawmakers. 

2、Revitalization Tax Credit Program in College Park, Maryland: On September 19th, College Park City released the details of its Revitalization Tax Credit Program. This program offers property tax reductions ranging from 5 to 15 years to encourage new development or renovation within designated revitalization tax districts. The program's incentives include: 

（1）High-end housing, affordable housing for students and workers, daycare centers, vocational training centers, recreational facilities and other community service projects. 

（2）Sustainable development projects that include tree planting or green infrastructure.

Intelligent and high-performance building support

1、The US Federal High-Performance Building Guidelines (HPBG) are launched: On September 19th, the National Institute of Building Sciences (NIBS) announced the official takeover and update of the sustainable design tool (SFTool) originally developed by the US General Services Administration (GSA), and renamed it "High Performance Building Guide (HPBG)". This is an important digital guidance platform aimed at helping federal agencies and industry partners: 

（1）Make smarter and more sustainable decisions throughout the entire process of building design, procurement and maintenance. 

（2）Align building decisions with national priorities, such as enhancing facility resilience, reducing long-term operating costs, complying with "Buy American" requirements, and implementing performance-based procurement, etc. 

2、California's Solar Innovation Program and Regional Electricity Market: Although not specifically targeted at commercial buildings, certain energy projects in California have provided new ideas and support for building energy conservation: 

（1）Solar Energy Overwaterway Project: The "Project Nexus" project in the Central Valley of California (installing solar panels above irrigation canals) has been fully operational. This innovative model demonstrates the great potential of integrating renewable energy with infrastructure. 

（2）Progress in regional power markets: The California legislature has passed AB 825, taking a step towards establishing an independent regulatory body for the Western Energy Imbalance Market (WEIM) and the Extended Day Ahead Market (EDAM). The analysis indicates that joining EDAM could save California over $1 billion in electricity costs annually and reduce greenhouse gas emissions by 58%. This will help provide cleaner and more economical electricity for buildings (including commercial buildings).