Applying for the Tier 2 Early Adopter Incentive, step by step
Washington pays Tier 2 owners for complying. For most buildings the Early Adopter Incentive covers the full cost of compliance, but only if you apply, and the money is first come, first served. Here is how it works.
How much
| Building | Incentive | Example |
|---|---|---|
| Commercial Tier 2 | $0.30 per sq ft of eligible floor area | 25,000 sq ft → about $7,500 |
| Multifamily, standard | $0.30 per sq ft | 30,000 sq ft → about $9,000 |
| Multifamily with Anti-Displacement Agreement | Up to $0.75 per sq ft, or the cost of compliance if lower | 30,000 sq ft → up to $22,500 |
Eligible floor area excludes parking, unconditioned and semi-conditioned space. The fund is $150 million; Commerce reported about $13.6 million awarded and more than $136 million remaining as of 24 October 2026. Payments may be reduced or delayed to match what utilities can pay. The Anti-Displacement Agreement is a legal commitment; read it with your own adviser.
Who is eligible
You must have benchmarked, set an EUI target, and developed and implemented both the Energy Management Plan and the O&M Program, in other words submitted a complete compliance application. Commerce asks Tier 2 owners to submit both the compliance and the incentive applications by 1 July 2027. Owners who receive a Notice of Violation and choose to pay the penalty lose eligibility; those who comply within the cure period may still qualify.
The application, step by step
The incentive application follows straight on from the compliance application in the Clean Buildings Portal (Commerce guide CBPS 043):
- Complete the compliance application, through Form C.
- Follow the portal's incentive prompts.
- Say whether the building is multifamily and, if so, whether you are applying for the enhanced rate.
- Enter any excluded floor area (parking, unconditioned, semi-conditioned).
- Add each utility serving the building, with account numbers and fuel types.
- Give your estimated cost of compliance.
- Upload any requested attachments.
- Every owner signs.
After you apply
Commerce reviews the compliance application in up to 30 business days, then the incentive in up to 14 more. Once approved, the utility contacts you for a W-9 and pays; utilities recover the cost through a public utility tax credit. If the compliance application needs corrections, the incentive waits until it is approved. What happens after you submit.
Tips
- Have every utility account number ready before you start, including accounts in tenants' names if the utility needs them.
- Keep your cost-of-compliance estimate honest and documented: staff time, any consultant or QEM fee, the kit.
- Apply as soon as your compliance application is complete. The fund is first come, first served.
The Tier 2 Filing Kit walks through the incentive screens field by field. Estimate your incentive with the free checker.