The tax credits and rebates are good news with the stricter Insulation codes in place, which are challenging to construction businesses as well as homeowners. The new codes are costing almost double since the new codes were implemented. Click here to download or review Massachusetts energy code requirements as of Jan. 2023. Massachusetts Energy Requirements as of Jan. 2023.

In August 2022 the Inflation Reduction Act was signed into Legislation. The IRA is to help reduce the national deficit and lower inflation while investing in domestic energy production and reducing carbon emissions. The goal is 40% by 2030.

Rebates and Grants to investigate:

The good news is that most products on the market today will be able to be used under the new codes.

The information below is from IDI Distributors:

https://www.idi-insulation.com/inflation-reduction-act-insulation/

RESIDENTIAL TAX CREDITS

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.

More good news. Massachusetts participates in the IRA Credit. Link to the FAQ’s page on the IRA credit.

https://www.masssave.com/inflation-reduction-act#:~:text=Q%3A%20Does%20the%20IRA%20offer%20tax%20credits%3F,energy%20efficiency%20and%20renewable%20energy.

25C Tax Credit will increase to 30% or up to $1,200.00 of job material costs with no lifetime cap through the year 2023 for residential retrofits. Homeowners and those who own residential multi-unit buildings can plan ongoing retrofits that will help the energy efficiency of their properties and continue to receive tax credits every year through 2032.
45L Tax Credit will provide a $2,500.00 credit for all new or substantially reconstructed residential and multi-family buildings that meet Energy Star certification, or $5,000.00 for those that meet DOE Zero Energy Ready Home (ZERH) program requirements.
HOMES (Home Owner Managing Energy Savings) Rebate Program will provide an average incentive of $2,000.00 for 20% increased energy efficiency and $4,000.00 for 35% increased energy efficiency (although these rates are doubled for households with income below 80% if the area median income (AMI). To receive the rebate, a contractor will do an energy assessment of the home, design a retrofit package, and model the savings projected.
High-Efficiency Electric Home Rebate Program includes up to $14,000.00 per household for insulation, air sealing and ventilation.
Weatherization Assistance Program provides rebates for homes owned or occupied by low-income persons, including an average of about $8,000.00 of funding per house or apartment to improve the dwelling, reducing total residential energy expenditures.

Additional programs are under approval.

To qualify for the credits the material must meet the International Energy Conservation Code, (IEEC) standards from the previous two years. If you installed in 2022 then the material would have to meet the current standards to qualify. The IEEC requirements vary by the 8 climate zones, R-value, and whether there is attic, crawlspace or basement exists. These are determined by the Department of Energy.

As for all tax filings it’s important to refer to the irs.gov website. For the State, please refer to your Office of Energy. Massachusetts https://www.mass.gov/orgs/massachusetts-department-of-energy-resources

To learn more on eh IRA act of 2022 https://www.owenscorning.com/en-us/insulation/inflation-act you can watch the video.