A Boatload of Building-Related Incentives in Inflation Reduction Act

The historic Inflation Reduction Act (IRA) recently signed into law is by far the U.S. government’s largest investment in climate change mitigation to date. Not surprisingly, given the outsized influence the building industry has on greenhouse gas emissions, many of the provisions address homes and commercial buildings. Here’s a partial rundown of what’s included, based on sources that include a U.S. Green Building Council analysis.

Commercial retrofits and new construction

A special tax deduction for energy-efficient commercial buildings (the 179D Commercial Buildings Energy-Efficiency Tax Deduction) already exists, but the new law raises the amount per square foot that can be claimed while also lowering the bar for qualifying.