Oregon’s electrical grid and utility costs have been relatively stable since 1988 when our energy use transitioned from fuel oil and wood to natural gas and electricity. Over the past 8 years, that stability we have come to rely on has been shifting, as the state is experiencing a dramatic increase in the demand for electricity. A lot of people have associated these increases with more households and cars transitioning to electric. We decided to take a look at this and found that there is a much bigger elephant in the room.
Building Performance Standard Update
Building Performance Standard Update
In 2023, the Oregon Legislature passed House Bill 3409, establishing an Energy Performance Standard policyfor commercial buildings, often referred to as a Building Performance Standard (BPS). The initiative affects large existing commercial buildings and multifamily residential buildings. If you own or manage a large building in Portland, this may affect you.
New Deadlines From the OBBB on Energy Efficiency Tax Credits
The GOP passed a bill that changes the Deadlines for tax credits on energy efficiency upgrades.
It is important to note these if you are in or will soon be in a project that could take advantage of them! There is still time to use some of these credits but you will have to move fast. Here are the details and resources to get you started.
EV tax credits ended in September of this year (2025). Energy efficient home deadlines are ending at the end of the year (Dec 2025). Energy credits such as solar panels and batteries end next summer (June 2026). Please consult a tax professional to be sure you qualify.
Here is the breakdown:
Energy Efficient Homes and Energy Tax Credits
25C Energy efficient home improvement credit -The cutoff is Dec 2025
Applicable in homes built after 2005.
There is a $12,000 cap for most categories.
This credit covers 30% of qualifying upgrade costs, up to the following limits
$600 limit for for exterior windows and skylights
600 limit for Energy property
Home Energy Audits can get you up to a $150 tax break
The upgrades this applies to include
Building Envelope
Insulation
Air sealing
windows
doors ($250 per door, with a $500 cap)
skylights
HVAC $2,000 (the $1,200 limit may be exceeded for this category)
heat pumps
heat pump water heaters
An electric or natural gas heat pump water heater
An electric or natural gas heat pump
A central air conditioner
A natural gas, propane or oil water heater water heater
Electrical panel upgrades (when installed with a heat pump or HPWH)
panelboards
sub-panelboard
branch circuits
feeders
An ID number must be created by the manufacturer and reported during your tax filing.
25D Residential clean energy credit -The Cutoff is Dec 31 2025
The credit is worth 30% of the cost to install qualifying systems that use solar, wind, geothermal, biomass, or fuel cell power to produce electricity, heat water, or regulate the temperature in your home.
Solar electric property expenditures
solar water heating property expenditures
fuel cell property expenditures
small wind energy property expenditures
geothermal heat pump property expenditures
and battery storage technology expenditure
Maximum payout for any taxable year shall not exceed $500 with respect to each half kilowatt of capacity of the qualified fuel cell property
45L New energy efficient home credit -The cutoff is now June 30th 2026
This applies to:
Energy Star Residential New Construction Program
Energy Star Manufactured New Homes program
Energy Star Single-Family New Homes National Program Requirements(3.1, 3.2 or the newest versions depending on the date a dwelling was acquired),
Zero energy ready home program
Multifamily
Must meet Energy Star Multifamily New Construction National Program Requirements and Energy Star Multifamily New Construction Regional Program Requirements
The maximum payout is
(A) $2,500 in the case of a residence which meets the requirements of subparagraph (A) of subsection (c)(1) (and which does not meet the requirements of subparagraph (B) of such subsection), and
(B) $5,000 in the case of a residence which meets the requirements of subsection (c)(1)(B).
Alternative Fuel refueling Property Credit - Deadline June 30 2026
30% or the cost of equipment up to $1,000 whichever is less.
This covers:
EV charging equipment
Bidirectional- can charge an EV and also discharge electricity to the grid
High efficiency electric home rebate - Deadline Sep 30, 2031
With an annual income less than 150% of the median income of your area
$840 for a stove, cooktop, range, oven or heat pump clothes dryer;
$1,750 for a heat pump water heater; and
$8,000 for a heat pump for space heating or cooling.
Rebates for non-appliance upgrades might be available up to the following amounts:
$1,600 for insulation, air sealing and ventilation;
$2,500 for electric wiring; and
$4,000 for an electric load service center upgrade.
There are limits on the amount certain families can receive.
For instance, a rebate can't exceed 50% of the cost of a qualified electrification project if the family's annual income is from 80% to 150% of the area's median income.
Each qualifying family is limited to no more than $14,000 in total rebates under the program.
So far, the GOP has not tried to eliminate this program, however they may shut down Energy Star. Which is currently used to qualify for many of these credits.
Clean Vehicles and Refueling Property Tax Credits
Expires June 30th 2026
Up to $7,500 for qualifying EVs, known as "clean vehicles," and $4,000 for used models
Income limits for new vehicles
Income limits for Used vehicles
Price limits
Vans and pick-up trucks must have an MSRP of less than $80,000
Cars need a MSRP of less than 55,000
Used must cost 25,000 or less
Model year at least 2 years before you bought it
Less than 14000 pounds
Eligible for FCV or plug-in EV with a battery capacity of at least 7 Kwh
Please consult a tax professional to be sure you qualify.
Information came from
Holland & Knight Inflation Reduction Act Tax Resource Library
Big Beautiful Bill Ending Renewable Energy Tax Credits in 2025
The IRS website with primary sources is here:
Energy Efficient Home Improvement Credit | Internal Revenue Service
Incoming Energy Efficiency Upgrade Requirements for Oregon Building Owners
Oregon wrapped up its 2023 legislative session by passing two major climate change bills containing well over a dozen proposals to tackle greenhouse gas emissions across the state. One proposal in House Bill 3409 will mean big changes for commercial building owners in the coming years. The bill outlines the creation and implementation of a building performance standard (BPS) for existing commercial buildings, making Oregon the fourth state to adopt such a standard.
Harka Headquarter's Solar Case Study by PowerNW
Our friends at Power Northwest worked tirelessly to ensure that we were able to get the most out of our solar system. To learn more about their involvement with our office renovation, be sure to check out their case study for Harka Architecture.
Material Spotlight: Let's Talk Cork Siding
What comes to mind when you think of cork? From wine bottle tops and tack boards to flooring, cork is a popular material for a wide range of products in our daily lives. At Harka, we’re all about exploring the latest in sustainable and non-toxic materials. So, let’s talk about what cork siding can do for you.
Harka’s HQ is Net Zero Energy & Net Zero Carbon Certified
Interior Design Trends for 2024-2025 in Action
Daylighting 101: Controlling Daylight
In this article, we will focus on strategies to control how daylight enters the building. Generally speaking, we want to filter light as it enters a building to maximize bright, ambient light suitable for the function of the space while also considering other factors, from energy efficiency to more subjective qualities such as how light moves throughout the day and interacts with textures and forms.
Sustainable NW Wood and Harka's Low-Carbon Remodel
Our good friends at Sustainable NW Wood recently posted a blog highlighting their contribution to our office’s low-carbon, high-performance remodel.
“Unprecedented” Weather: Is This the New Norm and How Can You Make Your Home Climate-Safe?
To ring the new year, Portland experienced an unprecedented storm resulting in more than a week of wind, snow, ice, and record breaking temperatures. We are seeing extreme rain events causing mudslides and floods, and extreme heat and drought periods causing never before seen wildfires. It is not hard to image that what we call extreme weather now, we will eventually just call weather. How will we adapt? Well, one way will be through changing the way we build and adapt our shelters.
SLOG (Sustainability Log)
To Harka “sustainability” goes beyond eco-friendly buildings, encompassing mindful choices and community building to create a more resilient and interconnected world for future generations. Join us as we delve into exciting topics, share valuable insights, and embark on a journey towards a more mindful and sustainable future together.
Changes are on the Horizon for Oregon Solar Owners
Sustainable NW Wood and The Audubon Society of Portland
Our good friends at Sustainable NW Wood recently posted a blog about the Portland Audubon Marmot Cabin project that we gratefully had the opportunity to collaborate on.
Featured in Fine Homebuilding
Featured on Redfin
Bar Diane featured in PDX Eater
We are so excited about our latest interior creation: a super cool wine bar in the Pearl! A huge thank you to the owners of Bar Diane for making this happen. They are amazing people that were TRULY a pleasure to work with. As you can see from the murals, Sami is an extremely talented artist which helped take the space to the next level. Congrats to Joshua Jewett in our office for a job well done. Insider Information: If you peek through the slats in the fence outside, you can still see the parking sign painted on the concrete wall from the long lost Gypsy Lounge. Go check out their amazing wines and food!
See the feature in PDX Eater
Case Study: Iterative Solutions for a Historic Home
When a client comes to us with a new project, they often have an idea in mind of what they want the finished result to look like. While this is always the starting point for our design process, putting pen to paper and developing 3D models can often reveal challenges with the initial ideas, as well as present unique opportunities for alternative solutions. In this case study, we show how we evaluated varied solutions to a complex design problem with 3D modeling to find a clean and elegant option that best met the client’s goals.
Consumer Activism: Is it possible and what’s the alternative?
You can find endless articles, thinkpieces and blog entries much like this one about the myth of the ethical shopper, whether organic food is really better for the environment, and the effectiveness of boycotting sweatshops. Sifting through to find real, substantive information about how to make tangible change with the things you consume challenging and exhausting, and is it even worth it?
Daylighting 101: Orientation
When we talk about the orientation of a building, we mean how the building sits on the site relative to its context, the most important of which is typically the sun (other factors being wind, views, topography and surrounding landscapes, buildings and streets). It is easier to optimize the orientation of a building for solar exposure in new construction, but there are takeaways that can be applied to existing homes as well.






