New Benefits to Commercial Businesses
On August 16th, President Biden signed The Inflation Reduction Act (“IRA” or the “Act”) which promises to fight the climate crisis, lower energy costs and create thousands of jobs for Americans. It includes financial and environmental benefits for commercial businesses, communities and households.
One of the goals of the IRA is to cut U.S greenhouse emissions by 40% by 2030. In order to meet this goal, the IRA provides financial incentives to commercial businesses and households for becoming more energy efficient and thereby lowering energy costs.
Some of the IRA financial benefits include:
SMALL BUSINESSES/MULTI-FAMILY HOUSING
- Commercial building owners can receive a tax credit up to $5 per square foot to support energy efficiency improvements that deliver lower utility bills.
- Tax credits covering 30% (up from 26%) of the costs of installing low-cost solar power.
- Rebates covering 50-100% of the cost of installing new electric appliances, including super-efficient heat pumps and water heaters.
- Rebates to make repairs and improvements in single-family and multi-family homes to increase energy efficiency.
- Tax credits covering 30% (up from 26%) of the costs of community solar projects—owned by local businesses that sign up families to save on their electric bills—with additional bonus credits of 20% for projects at affordable housing properties and 10% for projects in low-income communities.
- Prioritization of emissions-reducing projects in disadvantaged communities.
- The Act will make it easier and cheaper to purchase an electric vehicle, with upfront discounts up to $7,500 for new EVs and $4,000 for used EVs.
- Electric cooperatives will for the first time be eligible for direct-pay clean energy tax credits.
- Investments for rural electric cooperatives to boost resiliency, reliability, and affordability, including through clean energy and energy efficiency upgrades.
Navigating the requirements for tax credits and rebates while staying within required building codes can be complicated and challenging. At ReWire, our job is to help business owners evaluate the financial benefits of energy improvements and develop an implementation plan that meets necessary corporate goals along with state and federal requirements.
Contact us today and let us help you save money and get started on your energy improvements.