The Inflation Reduction Act, signed into law last month on Tuesday, August 16, is the largest investment in energy efficiency and climate change spending in U.S. history. The consumers who take advantage of this act will reap benefits for themselves, while making profound progress to mitigate local and global effects of climate change.
Move over fancy granite countertops: energy efficiency upgrades are poised to become the new must-have investment for homeowners and commercial buildings.
There are a wide variety of tax rebates and tax credits, as well as financing mechanisms. These revised credits will be extended through 2032. As this rolls out, we’ll help our clients with details and optimized strategies. Here is a preview of some our favorite incentives:
- Every energy efficiency upgrade begins with a certified energy audit. And for the first time, there is a tax credit of $150 for getting a home energy audit. Schedule an Energy Audit here
- Rebates, capped at $4,000 for up to 30% of certain energy efficiency upgrades.
- The old 25C energy efficiency tax credit lifetime limit has been changed from $500 to a $1,200 annual limit through 2032.
- The old 79D has been upgraded with increased per square foot limits for lighting, HVAC and building enclosure upgrades.
- There are extensions of the popular solar and electric vehicle credits.
Details matter, here, and creating a building-science-based plan and energy model customized for your individual property will yield the highest returns while also improving indoor air quality and building durability. Combine them together, and leverage them with a Green and Energy Efficiency Home Appraisal Addendum at the point of purchase, major renovations, or re-sale, and the returns are even greater.
If your ears are perking up at this news, we can help. In particular, here are our first step recommendations:
- Get at energy audit from a BPI or RESNET qualified professional. Energy audits from unapproved building auditors will not be eligible for the tax credits.
- Incorporate energy audits and energy models into the first phase of any planned building design or renovation, and follow through with building science based specifications.
- Follow your energy auditor recommendations and prioritize work accordingly so you can benefit from highest performance improvements along with the incentives that lower the first cost of any project.
- Keep all paperwork together so you have it on hand for your tax professional.
So if you’re planning some home improvement projects for your house, schedule an energy audit so we can help you create the best plan of action to improve your indoor air quality, safety, and boost the energy efficiency on your house. Now they are more affordable than ever, so its a no-brainer – go green with energy efficiency upgrades, while also saving green – putting money back into your pocket and saving our planet.
Better Building Works has expertise in addressing any home energy issues you are having. We are passionate about making your home perform its best, in a way it works for you. An energy audit is the single best thing you could do for your existing home. Our building science professionals obtain all the onsite quantitative and science-based diagnostics needed to accomplish making your home a healthy home. We will also develop a plan which presents the most cost-effective ways to improve energy efficiency in your home.
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