On August, 16, President Joe Biden signed the Inflation Reduction Act (IRA) into law. The estimated $737 billion measure could mean thousands of dollars to improve building efficiency. The Act aims to fight inflation, invest in domestic energy production and manufacturing, and reduce carbon emissions. It’s projected to reduce carbon emissions by roughly 40% by 2030. Barton James, ACCA president and CEO said that Congress (or at least the Democrats) believe HVAC contractors are the key to making major efficiency changes and therefore, the key to moving the U.S. away from fossil fuel usage in homes.
While the overall legislation of the IRA had both supporters and resisters within the HVAC industry, one aspect that may prove beneficial is that contractors can leverage the tax credits when selling system upgrades to their customers.