On August 16, 2022, President Joe Biden signed into law a new bill called the Inflation Reduction Act. According to CNN, the $750 billion bill is the “largest climate investment in American history.” The bill includes funding to address climate-destroying greenhouse gasses, support to make federal buildings more efficient, funds for new technologies, and tax credits for commercial building energy efficiency. Learn more about how the Inflation Reduction Act impacts efficiency, what it means for window film, and how it can benefit your business.
What The IRA Could Mean for You
The Inflation Reduction Act, or IRA, includes $370 billion of total investments dedicated to Energy Security and Climate Change. There are a few ways that the act will support buildings to reduce their carbon footprint, improve efficiency, and reduce energy bills.
Lower Carbon Emissions & Energy Bills
Biden aims to reduce carbon emissions by 50% through 2050. One of the goals of the IRA is to lower greenhouse gas emissions by about 1 gigaton by 2030. That would be 43% below the levels in 2005. As buildings make up 30% of energy usage in America and 39% of carbon emissions pertaining to energy, the act focuses on providing funding to buildings. $250 million will go toward converting federal buildings to high-performance green buildings. This is a more significant impact than any other climate change-related act that’s been passed. In addition, $975 million will be appropriated to the Federal Buildings Fund for emerging and sustainable technologies.
Tax Credits
Tax credits will be available per square foot (up to $1/square foot) for buildings that achieve certain energy cost savings. If the building is installed with labor-paid prevailing wages and meets apprenticeship requirements, those tax credits can be higher (up to $5/square foot). The IRA also includes a new provision to the Internal Revenue Code, acknowledging electrochromic glass as an energy-efficient product. As such, tax credits will be offered for buildings that utilize electrochromic glass.
Improve Efficiency with Commercial & Residential Window Film
Many of the funds in the IRA are going to support federal and commercial building efficiency. But the bill still provides funding for families and residential properties. Along with the new changes outlined in the act, adding window film to your home or commercial building will provide benefits beyond lowering utility bills and reducing emissions.
It’s estimated that solar heat gain due to windows causes 33% of cooling expenses. Applying window film to exterior glass works to reflect that solar heat, keeping interiors at a comfortable temperature and reducing energy bills. It can lower heat gain in the hotter summer months by almost 80%. With window film, building owners can save up to 19kWh per square foot of glass or $1 to $2 per square foot of film installed.1 For protection in colder months, insulating window film works to retain warmth and prevent drafty air from skyrocketing utility bills.
Window film can improve efficiency all year long, help buildings qualify for LEED credits, become carbon negative in as little as six months, and generate a return on investment in 3-7 years. With the IRA and window film, building managers and homeowners can more effectively work toward reducing their environmental impact while saving energy and lowering utility costs. Reach out today to speak with an expert to learn more about window film or how it pertains to the Inflation Reduction Act.
1Source: https://www.3m.com/3M/en_US/building-window-solutions-us/solutions/energy/
