Residential/Multifamily Energy Upgrade Incentives/Inflation Reduction Act and Other Recent Federal Laws: American Council for an Energy-Efficient Economy Policy Brief

Mitchell, Williams, Selig, Gates & Woodyard, P.L.L.C.

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The American Council for an Energy-Efficient Economy (“ACEEE”) issued on September 28th a document titled:

Home Energy Upgrade Incentives – Programs in the Inflation Reduction Act and Other Recent Federal Laws (“Policy Brief”)

The Policy Brief summarizes programs that will or could provide resources for energy efficiency retrofits for existing single family and multifamily homes.

ACEEE describes itself as a nonprofit research organization developing policies to reduce energy waste and combat climate change.

By way of introduction, the Policy Brief states that the recent:

. . . Inflation Reduction Act (IRA), along with the Infrastructure Investment and Jobs Act (IIJA) from last year, allocate more than $25 billion for programs and tax incentives to improve the energy efficiency of, electrify, and reduce greenhouse gas (GHG) emissions from existing homes. Even larger broad GHG emission reduction programs under the IRA could be used for home efficiency.

Components of the Policy Brief include:

  • Need for States, Cities, Utilities, and Others to Promote These Programs
  • The Major Programs:
    • Home Energy Performance-Based Whole-House Rebates
    • High-Efficiency Electric Home Rebate Program
    • Weatherization Assistance Program
    • Energy Efficiency and Climate Resilience in Affordable Housing
    • 25C Energy Efficient Home Improvement Credit
    • 179D Energy Efficient Commercial Building Deduction
    • Greenhouse Gas Reduction Fund

It is also noted that the IIJA provides direct funding to states and municipalities under the:

  • State Energy Program
  • Energy Efficiency and Conservation Block Grants

Further, cities and states are also noted to be able to receive federal funds as part of the American Rescue Plan Act that can be used for some energy efficiency measures.

An Overview of Programs is provided addressing:

  • Funding
  • How are funds distributed?
  • Timing
  • Who is eligible?
  • What is eligible?
  • Incentive amounts

The Policy Brief’s three tables address:

  • Summary of retrofit incentives for single-family houses and multifamily buildings in recent federal legislation
  • Rebate and credit specifications and amounts for specific measures
  • Rebate and credit specifications and amounts for whole-home retrofits

A copy of the Policy Brief can be downloaded here.

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Mitchell, Williams, Selig, Gates & Woodyard, P.L.L.C.
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