NAIMA has produced a fact sheet summarizing the energy efficiency tax credits and programs included in the Inflation Reduction Act (IRA). The IRA offers billions of dollars in incentives for improving building energy efficiency to address climate change, including tax credits and incentives for new construction residential properties, existing home retrofits, and new and existing commercial buildings.

Included in the new law is an updated Residential Efficiency Tax Credit (25C) which covers 30% of insulation and air sealing materials up to $1,200 and is available on a yearly basis. Home energy audits are also covered up to $150. The credit amount applies from January 1, 2023, to December 31, 2032.

The factsheet also details new commercial and builder new home tax credits, as well as new funding for DOE electrification rebate and weatherization programs and HUD affordable housing upgrades. More information on how to access these tax credits and programs will become available as implementing guidelines are developed.