Last week, the new congressional budget deal, the Inflation Reduction Act (IRA) of 2022 passed the house. The bill is expected to be signed by President Biden next week and contains several provisions that could benefit energy-conscious home and business owners.
Rebates will be in place for the installation of residential heat pumps and solar, delivering a 30% tax credit for the installation of residential panels (focused on low- and moderate-income homes, with a maximum rebate of $14,000 in all). The bill also includes tax credits for green upgrades, such as new energy-efficient windows, doors, water heaters, furnaces, and air conditioners. Rebates will also be available for low- and middle-income families that purchase energy-efficient home appliances.
The IRA also expands and renews tax reduction 179D, which incentivizes energy efficiency in commercial buildings and certain multi-family housing units. The deduction will be increased from its current $1.88 maximum to as high as $5 per square foot. Partial benefit allowances have been removed, and new retrofit plan qualifications have been added. These changes will go into effect in January 2023.
For more information about what the IRA means for homeowners, read more coverage on Kiplinger. If you’re interested in taking effective steps towards efficiency and lower energy usage on your commercial property, contact 360 Energy Group at firstname.lastname@example.org.