How the Inflation Reduction Act May Positively Impact the Home Improvement Industry

If you're planning a few home improvements that will boost the energy efficiency of your house, you may save some money on your projects.

Recently, the Inflation Reduction Act — which was signed into law by President Joe Biden — contains provisions aimed at improving health care and climate change.

It also could benefit people who purchase energy-efficient water heaters, heat pumps, and HVAC systems.  Plus, the legislation includes a 10-year extension of the homeowner credit for solar projects, like rooftop solar panels. 

What is the purpose of the act and how does it save money?

Overall, the inflation reduction act is a piece of legislation that was passed in order to help reduce inflation in the United States. This act will have a positive impact on the home improvement industry, as it will allow homeowners to take advantage of more tax credits that have been extended. 

The legislation extends and enhances two tax credits that reward "green" upgrades to your home.  According to experts, It will make home efficiency upgrades more affordable.  The Inflation Reduction Act will make it more affordable for families to purchase energy efficient and electric appliances when they need to replace everyday home appliances and equipment.

Households can save up to 30% with tax credits for home construction projects on windows, doors, insulation, or other weatherization measures that prevent energy from escaping homes.

How will it impact the construction and building industry

In addition, the inflation reduction act will also create more jobs in the home improvement industry, as builders will need to hire more workers to meet the demand for their services. This is good news for the economy as a whole, as it will help to boost growth and create new opportunities for people across the country.

This is good news for builders, who will be able to pass on the savings to their customers.  If you're planning on undertaking any home improvement projects in the near future, it's worth keeping an eye on the inflation rate, as it is likely to fall as a result of the inflation reduction act. This will save you money on your project, and it will also be good for the economy.  If you are interested in starting your next project, contact Builders Innovation Group today!

Sources:

https://www.kiplinger.com/taxes/605081/ev-tax-credit-inflation-reduction-act-2022-changes

https://www.washingtonpost.com/business/2022/08/16/inflation-reduction-act-save-money/

https://www.whitehouse.gov/briefing-room/statements-releases/2022/08/16/fact-sheet-how-the-inflation-reduction-act-builds-a-better-future-for-young-americans/