Commercial and Industrial Buildings

Efficiency Programs and Incentives

Mass Save

There are many offerings through Mass Save to help commercial and industrial buildings become more efficient.

  1. Start with a Building Energy Assessment to identify the most effective ways to save energy and money.
  2. Take advantage of rebates and incentives for businesses for building insulation weatherization, heating and cooling, lighting and controls, specialty equipment, water heating, and more.
  3. Take advantage of additional programs and technical support to help your business save energy.

Commercial Buildings Energy Efficiency Tax Deduction

The 179D commercial buildings energy efficiency tax deduction enables building owners to claim a tax deduction for installing qualifying systems in buildings. Tenants may be eligible if they make construction expenditures. A tax deduction (up to $1.88 per square foot) is available to owners of new or existing buildings who install (1) interior lighting; (2) a building envelope; or (3) heating, cooling, ventilation, or hot water systems that reduce the energy and power cost of the interior lighting, HVAC, and service hot water systems by 50% or more. Refer to the Summary of 179D Tax Deductions for more information.

Inflation Reduction Act

Your business or organization may be eligible for additional incentives for energy efficiency and clean energy upgrades passed by the Inflation Reduction Act. View available incentives.

Additional Resources

  • DSIRE: A database of of all available programs and incentives for renewables and energy efficiency.
  • MassCEC Benefits & Savings: A summary of federal, state, and Mass Save incentives by clean energy solution.

Property Assessed Clean Energy (PACE) Massachusetts

As of 2020, financing is available through Property Assessed Clean Energy (PACE) Massachusetts to fund energy improvements in commercial and industrial buildings, and multifamily properties with five or more units, and buildings owned by nonprofits. The program is administered by MassDevelopment and the Department of Energy Resources (DOER) and was passed as part of the energy legislation signed by Governor Baker in August 2016.

Property Assessed Clean Energy (PACE) for commercial buildings is a new mechanism to finance energy improvements on commercial and industrial properties in Massachusetts. To finance improvements, a property owner agrees to a betterment assessment and lien on their property, which repays the financing. This approach enables owners to undertake more comprehensive energy upgrades with longer payback periods of up to 20 years. At property sale, the assessment stays with the property and is transferred to subsequent property owners. Parties interested in accessing PACE Massachusetts should carefully review the guidelines and are urged to contact MassDevelopment staff to discuss any potential financing(s) before submitting an application.

Benefits of PACE

  • Property owners: Advantageous, non-recourse, upfront, long term, potentially off-balance sheet financing that remains with the property if sold. Capital improvements could reduce operating costs and increase property values.
  • Municipalities: Job creation, business growth, and environmental benefits associated with reducing energy consumption. 
  • Capital providers/Mortgage holders: Improved cash flow and reduced credit risk from lower operating costs via financing that cannot be accelerated. Capital improvements could also increase the collateral property value.

The Lab Project: Sustainability Support for Laboratories

The Lab Project is a 501(c)(3) non-profit organization with a mission to support and facilitate laboratory sustainability. The team has led the development of laboratory efficiency programs in the utility industry, and is part of local and national groups dedicated to green laboratory practices. They leverage their expertise to help your lab create and carry out a sustainability plan in line with your growth goals. Learn more about their offerings, including energy-efficiency, water conservation, green chemistry, recycling waste reduction, and green behavior.