Inflation Reduction Act
Summary
$9 billion in home energy rebate programs to help people electrify their home appliances and for energy-efficient retrofits.
10 years of consumer tax credits to make heat pumps, rooftop solar, electric HVAC and water heaters more affordable, which make homes more energy efficient.
$4,000 in consumer tax credits for lower- and middle-income individuals who buy used electric vehicles, and up to $7,500 tax credits for new EVs
$1 billion grant program to make affordable housing more energy efficient
Companies to Benefit
Home owners who upgrade their insulation, air sealing and ventilation can get up to $1,600 in tax rebates. Insulation companies should create a strategy to educate home owners on the program and convert those interested into customers. Paid search is typically the first place we start when marketing insulation services.
- 30% federal tax break for rooftop solar installations for 10 years.
- Home battery systems will qualify for the 30% credit for the first time.
- Building a solar or wind farm. The investment tax credit for onshore wind and solar starts at 30%, but if certain criteria are met, it could be as high as 70% for projects under 5 MW and 50% for larger projects, according to the report.
- $250 for an exterior door ($500 total for all exterior doors)
- $600 for exterior windows and skylights
Home owners who upgrade their HVAC have several areas for rebates.
- $1,750 for a heat pump water heater
- $8,000 for a heat pump for space heating and cooling
- $600 for; central air conditioners; electric panels and certain related equipment; natural gas, propane, or oil water heaters; natural gas, propane, or oil furnaces or hot water boilers;
- $2,500 for electric wiring
HVAC companies should create a strategy to educate home owners on the program and convert those interested into customers. Paid search is typically the first place we start when marketing HVAC services.
- New electric vehicles up to $7,500 tax credit for 10 years—until December 2032
- Used EVs up to $4,000 or 30% of the price of the vehicle, whichever is less.
- Commercial EVs – Qualified Commercial Clean Vehicles provides a tax credit of up to 30% of the incremental cost between the EV and a comparable internal combustion vehicle. Hybrid vehicles that have an internal combustion engine and at least a 15-kWh battery would qualify for a 15% credit. The maximum credit amounts are based on the weight, with vehicles less than 14,000 lbs. capped at $7,500 and those over 14,000 lbs. capped at $40,000.
- First wave of EV and battery manufacturing onshoring.
- A business that installs an EV charger can get up to 30% of the total cost of equipment and installation. If you complete the installation project after 2022, the tax credit, per property item, is up to $100,000.
- Home EV charging station installations tax credit is 30% of the costs of hardware and installation for qualified property.
*In 2023 the tax credit for business and home installations, will apply to other EV charging equipment, like bidirectional (i.e., two-way) charging equipment.
According to Climate Central, a research and communications nonprofit, the frequency of billion-dollar weather disasters is now about one event every 18 days. Climate disasters cause destruction and the companies that assist in the recovery and restoration are going to continue to be busy.
