The Inflation Reduction Act (IRA) allocates $369 billion to nationwide energy efficiency programs, with a significant portion dedicated to homeowner tax credits. These incentives are designed to make upgrading your home more affordable while boosting overall energy efficiency, lowering monthly utility costs, and creating a more comfortable living environment.
These tax credits can be combined with local incentives for even bigger savings! IRA tax credits include:
- Residential retrofit incentives
- New and retrofit commercial incentives
- New home incentives
- Efficient building envelopes through building codes
Here are some key points from the Act.
New Home Incentives
- Builder credit of $2,500 for single family homes that meet ENERGY STAR Version 3.2 and meet 2021 IECC prescriptive envelope standards
- Builder credit of $5,000 for homes that meet DOE Zero Energy Ready Home standard
- Builder credit of $500 / $1,000 for multifamily units, with incentives increasing to $2,500 / $5,000 when meeting prevailing wage requirements
- Previous law’s credit restored through 2022. Enhanced credit amount applies from January 1, 2023 to December 31, 2025
Residential Retrofit Incentives
- Previous law’s credit restored through 2022. Enhanced credit amount applies from January 1, 2023 to December 31, 2025
- 30% of insulation and air sealing materials up to $1,200 (per year)
- Credit available on a yearly basis
- Home energy audits covered up to $150
There are many components to this act and many ways you can save, and tax credits are subject to program changes. Our team is happy to answer questions. Contact our office to discuss your project and how tax credits can help.