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Is Tier 2 incentive money still available? Fund status, October 2026

Published · Updated and checked against Commerce guidance

Quick answer · as of

Is the Tier 2 early adopter incentive still available?

Yes. As of September 24, 2026, Commerce reported that about $11.8 million had been awarded and over $138 million was still left in the Tier 2 early adopter incentive (Commerce). The incentive pays $0.30 per eligible square foot, first come, first served, so the buildings that file first are paid first. A 35,000 sq ft building is worth up to $10,500 (EST.).

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How much does Tier 2 compliance cost? · 1:14 · Transcript

What does Tier 2 compliance cost? Less than you'd think.

You're paying for your energy data, two plans, and a Qualified Energy Manager's signature.

Some firms charge a flat fee per building, as high as 12,000 dollars.

Tier Two Partners charges 10 to 15 cents per square foot, and that includes the Qualified Energy Manager.

On a 30,000 square foot building, that's about 4,500 dollars, all in.

Now the good part. File early, and the state's incentive pays 30 cents per square foot. That's up to 9,000 dollars.

After our price, that leaves up to about 4,500 dollars.

Your utility pays it after the state approves your filing. First come, first served. So file early.

And we're the fastest. Some firms take six to ten weeks. We usually file in two to four.

Plus, our dashboard comes free, for life. It tracks every deadline, and every dollar of incentive coming your way.

Check yours today. Get a free quote, or book a call with us to learn more, at tiertwopartners.com.

How much of the $150 million fund is left?

Most of it. These are Commerce's own figures, as of September 24, 2026:

Tier 2 incentive fund Amount
Total fund $150 million
Awarded to buildings about $11.8 million
Already paid out by utilities over $6 million
Still left over $138 million

Source: Commerce Tier 2 Early Adopter Incentive page. Commerce updates these figures from time to time; this guide is updated when it does. Every dated Tier 2 count in one place: Tier 2 by the numbers.

The money is not in one pot that Commerce hands out. Your utility pays you, and the state gives the utility a tax credit for it. Utilities with more than 25,000 customers must take part, and smaller ones can choose to. How the payment works, step by step, is in How to claim the Tier 2 incentive.

How long can you apply for the Tier 2 incentive?

File by July 1, 2027. Commerce says all Tier 2 covered buildings must submit their compliance and incentive applications by July 1, 2027, the Tier 2 compliance deadline (Commerce). The state law opens the incentive application window from July 1, 2025 through June 1, 2030 (RCW 19.27A.220, subsection 6(b)), but a building that misses July 1, 2027 is out of compliance and open to a fine. And because the fund pays first come, first served, the later you file, the more of it is already spoken for.

Why does filing early matter?

The fund pays in the order applications arrive. Commerce reviews filings in the order they come in and says that complying early "can help ensure incentives are still available for your building" (Commerce). Thousands of Tier 2 buildings share the same deadline, so the closer it gets, the longer the line. Commerce's published review time is up to 30 business days for compliance and up to 14 more for the incentive, and it can run longer when many filings land at once (How to claim the Tier 2 incentive).

Can the incentive be smaller than $0.30 per square foot?

It can. Commerce says payments "may be reduced or delayed to match the utility's ability to make the payment" (Commerce). The utility and the Department of Revenue confirm the tax credit is there before the utility pays. Commerce still calculates every incentive at the full rate. Which square feet count is in Tier 2 early adopter incentive: how much you can get.

Which buildings can get the Tier 2 incentive?

Tier 2 buildings that file the full compliance package and have a participating utility. That means:

  • A commercial building over 20,000 and up to 50,000 sq ft, or a multifamily residential building over 20,000 sq ft, not counting parking.
  • A filed energy benchmark in ENERGY STAR® Portfolio Manager®, an energy use intensity target, an Energy Management Plan and a running Operations and Maintenance program.
  • At least one participating electric, gas or thermal utility serving the building.

What happens if you don't file at all?

You give up the incentive and can be fined the same amount. After July 1, 2027, Commerce can send a notice of violation. If you still don't file, the fine is up to $0.30 per square foot, it can repeat every five-year cycle, and you may lose the incentive (WAC 194-50-160, Annex Y). On a 35,000 sq ft building that's up to $10,500 in incentive you miss and up to $10,500 in fines you owe (EST.). The full rules are in What Tier 2 owners must file by July 1, 2027.

How does Tier Two Partners get your claim in?

We file your compliance and your incentive application together, so your building gets in line as soon as it's ready. We build the benchmark, Energy Management Plan and Operations and Maintenance program from your bills and service records, a Qualified Energy Manager reviews and signs, and we file with your participating utilities and account numbers filled in.

Our fee is $0.15 per eligible square foot for one building, down to $0.10 at 20 or more, with the Qualified Energy Manager included: no separate QEM fee. At $0.30 per square foot, the incentive is more than our whole fee: on a 30,000 sq ft building, up to $9,000 in incentive against $4,500 for us, QEM included. Half our fee is due once your building's information is in and your price is confirmed (before the engineer's review), and half when we submit the filing to Commerce, or the whole fee up front at $0.02 less per sq ft. Every provider's fee, ours included, is owed whether or not the utility pays the incentive, because the fee pays for the filing itself. Prices side by side: How much does Tier 2 compliance cost?. Which companies file it: Best Tier 2 compliance companies in Washington.

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Sources: Commerce Tier 2 Early Adopter Incentive page (funding status as of 09/24/2026), RCW 19.27A.220, Tier 2 Incentive Guidebook V3, WAC 194-50-160. Rules can change; the Commerce Tier 2 page is the official source.

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