Your ultimate guide to understanding what you need to know about how the Inflation Reduction Act (IRA) will impact the insulation industry.
The US Inflation Reduction Act (IRA) was passed in August 2022 with the goal of lowering the cost of living for American families. According to the IRS, “The Inflation Reduction Act covers new and reinstated tax laws that will affect individuals and businesses, including a number of credits and deductions.”
The IRA bill aims to lower costs for families, while combating climate change through financial support for individuals and businesses to retrofit, and build healthier buildings that use less energy. This has a positive impact on the insulation industry in two specific ways:
The first portion of the Inflation Reduction Act will impact the insulation industry by extending pre-existing national tax credits that were set to expire, providing more incentives for commercial building owners who want to improve the energy efficiency of their building(s).
The second portion of the Inflation Reduction Act will provide homeowner rebates on a state-approved basis through a number of new programs. The specifics for each vary from state to state. If you live in a state that hasn’t accepted the new IRA rebates, we recommend reaching out to the Building Performance Association (BPA) which is leading an affiliate model program across the US to make our voices heard.
Learn more about how your company can help clients gain the best IRA rebates and credits with our relevant videos.
Because the Inflation Reduction Act bill requires extensive knowledge and reporting on the ways in which a project positively impacts the energy performance of a building, it’s important that your team of insulation installers is prepared with the latest best practices. Whether your team has years of experience or is new to the insulation business, IDI’s classes and training will help you stay ahead of the competition while providing a valuable service to your employees.
IDI’s comprehensive training classes cover the complete insulation process, wholesale fiberglass insulation, building science and codes, health and safety training, and everything else you need to increase your productivity and profits.
Get help navigating the IRA guidelines and ensure your team is prepared to aid new clients with IDI’s classes and training.
While existing and reinstated programs already provide federal tax credits, to fully benefit from the IRA bill, states need to individually opt-in to the new federal rebate programs. New programs are expected to be implemented in mid to late 2023 depending on your state.
If you need help navigating your state’s IRA rebates, our local offices stay up to date on the latest information. Contact your local sales rep to learn more.
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Since 1979, IDI has provided insulation contractors with a wide selection of quality supplies and equipment. As a family-owned and operated company with locations around the country, we have helped over 3,000 independent insulation contractors and distributors successfully profit and grow their own businesses nationwide.
When you need more than an insulation distributor, call IDI. We provide resources, services, support, products, and professionalism that help you succeed.
Have a question on anything insulation, pricing, or want to place an order? With hundreds of products and countless services, our experts will help walk you through the process of getting ready for your next project. Get in contact with our team today for help and guidance on the right products and best techniques for you and your business.