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tHE INFLATION REDUCTION ACT (IRA) OF 2022

tax incentiveson your projects

The Inflation Reduction Act (IRA) of 2022* has many provisions aimed to make sustainable improvements more accessible and affordable for homeowners, homebuilders, and designers.

 

The IRA increased and extended several tax incentives  for a variety of building and construction projects to encourage the adoption of energy efficient upgrades in new and existing buildings.

 

From January 1, 2023 through 2032, you can take advantage of the benefits of tax incentives when investing in energy-efficient upgrades. These improvements encompass various aspects such as weatherization and efficiency upgrades, the installation of new electric appliances, and purchasing electric vehicles or rooftop solar systems.

 

Learn more about how we can help you achieve the tax incentives below!

HOW CAN GMW HELP

GMW Construction uses an assortment of manufactured products that support the IRA. From air-sealing, thermal, and weatherization products, to Low Emission Asphalt (LEA), to windows/doors/skylights, insulation, electrical) plus eligible furnaces, boilers and central air conditioners, all installed by our experts. With 20+ years of using industry-leading building science and expertise, we provide solutions you can trust. 

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179D

Tax Deduction for Energy Efficient Commercial Building (Section 179D):

Available to builders, contractors, and designers of commercial construction projects.

All official information related to the tax credit will be determined and published by the IRS. Use Form 7205 to file this credit. All revisions are available at www.irs.gov/form7205.

To claim the 179D Deduction, the IRS requires that you (through an engineering professional) use a qualified software program to model your energy usage. See a list of qualified software for calculating energy savings

A project designed, approved, and constructed in accordance with the 2009 and all subsequent editions of the International Energy Conservation Code (IECC), where adopted, should meet the intent of IRA where compliance with ASHRAE 90.1-2007 is required. 

 * Taxpayers who begin construction before 1/1/2023 may apply Reference Standard 90.1-2007 regardless of when the building is placed in service. Minimum standards that must be met to achieve 179D. Local code requirements supersede those standards.

 

 *Savings percentages based on IRS Notice 2012-26. The information in this program was prepared only as a predictor of expected cost and not as a guarantee of purchase price. 

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Energy Efficient Home Credit (Section 45L):

 

Available to eligible contractors of new residential construction projects.

The Energy Efficient Home Credit (Section 45L) provides Federal tax credits for single family homes, manufactured homes, and large multifamily residential buildings that were/are placed in service between Jan. 1, 2023 and Dec. 31, 2032.

The tax credit per dwelling has increased: 

  • Up to $2,500 (meet or exceed ENERGY STAR® requirements)

  • Up to $5,000 (meet or exceed Department of Energy (DOE) zero-energy ready 

 

Additionally, Multifamily projects are no longer restricted to 3 stories or less, and Low Income Housing Tax Credit (LIHTC) can be used in addition to 45L where applicable.

 

Use Form 8908 to file this credit. All revisions are available at www.irs.gov/form8908. Be sure to refer to ENERGY STAR® and DOE Zero-Energy Ready Home program requirements to understand which guidelines apply and their full details.

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Energy Efficient Home Improvement Credit (Section 25C): 

 

Available to a homeowner or tenant for upgrades to their primary residence.

This credit can now be used annually, covering 30% of eligible expenses up to $1,200 per year. 

 

All official information related to the tax credit will be determined and published by the IRS. Use Form 5695 to file this credit. All revisions are available at www.irs.gov/form5695.

 

For more information, visit Home Energy Tax Credits | Internal Revenue Service (irs.gov)

Feel free to give us a call for more information

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