3.4 Inflation Reduction Act with Cynthia Adams

“A couple of things to know about tax credit. So there’s efficiency tax credit and renewable tax credit. Efficiency tax credits are the ones that were expanded this year. It used to be set at $500 whereas now you can take up to $3,200 in the tax year in which you make the installations. On the renewable side, one thing that’s important to know is that for the first time now battery storage is a part of what you can get 30% tax credit as well. That didn’t use to be the case.” As a part of the new legislation, Inflation Reduction Act of 2022, some financial incentives are now available for home owners and builders to build higher performing residential buildings as well as to improve existing homes for better comfort and efficiency. I have been dying to learn about what IRA has to offer to homeowners and builders so I can guide them to utilize this massive bill. Cynthia Adams, CEO and Co-founder of Pearl Certification generously offered to explain IRA in a nutshell. While there are many moving parts and the mechanics of rebate are still pending, Cynthia offers some information we should be aware of. Incentives are offered in two different types: 1) tax credits for efficiency and renewable energy upgrades; 2) electrification (HEEHRA) and efficiency (HOMES) rebates. Here are some helpful website links Cynthia mentions in our conversation: Area Median Income Look-up Tool Clean Energy Tax Credit for Consumers by Department of Energy Greendoor.app  by Pearl Certification