If you’re a commercial or residential building owner or if you are embarking on a new project, you may be wondering how the Federal Inflation Reduction Act (IRA) can help you achieve your design and development goals. With $369 billion authorized for energy and climate change spending, we’ve delved in to understand the impacts and historic opportunities for our clients and projects.
The IRA includes the extension and expansion of existing tax incentives to improve energy efficiency and sustainability of existing and new buildings.
The IRA also provides $40.8 billion in direct spending through rebates, grants, and loan programs administered by multiple federal agencies – the Department of Housing and Urban Development (HUD), the Department of Energy (DOE), and the Environmental Protection Agency (EPA). These funds may be used in both new construction and retrofit projects.
The $1B allocated for state and local governments to adopt the latest energy codes will contribute to AIA2030 goal of net zero emissions by 2030. $330M is allocated for energy code adoption that meet or exceed the 2021 International Energy Conservation Code (IECC) and or ASHRAE 90.1-2019. It also provides an additional $670M for states and localities to adopt and implement zero-energy stretch codes. Massachusetts has been updating the building code, which includes a new stretch code and more rigorous specialized opt-in code. Components of the code will go into effect in 2023 and we’ll be sharing more information on our blog in the next few months.
Each of these, and other components of the IRA, have various starts and expirations. This timetable provides and ‘at a glance’ overview:
Federal Government Information & Resources:
Databases & identification of incentives for renewables and efficiency: