IMPLEMENTING THE INFLATION REDUCTION ACT: A ROADMAP FOR FEDERAL AND STATE BUILDINGS POLICY

This report by Energy Innovation analyzes the building sector provisions of the 2022 Inflation Reduction Act (IRA), detailing how rebates, tax credits, and funding for building codes can accelerate decarbonization. It provides a roadmap for federal, state, and local policymakers to implement these incentives, emphasizing the need for complementary regulations—such as updated appliance standards and building codes—to overcome the challenge of slow building stock turnover and meet 2030 climate goals.

• The Inflation Reduction Act (IRA) is projected to reduce annual building sector emissions by 32 to 33 million metric tons of carbon dioxide equivalent (MMT CO2e) by 2030. However, this represents only a 5 to 6 percent reduction of building sector emissions relative to business-as-usual, largely due to the slow turnover of building appliances and the high upfront costs of retrofits.
• The IRA provides significant financial support for low- to moderate-income (LMI) households through the High-Efficiency Electric Home Rebate Program (HEEHRA), which allocates $4.5 billion. For households earning up to 80 percent of the area median income, these incentives can cover up to 100 percent of project costs, with a maximum cap of $14,000 per home for whole-home efficiency and electrification.
• Beyond climate impacts, the IRA's building provisions are expected to improve public health by reducing nitrogen oxides (NOx) from fossil fuel combustion. Modeling suggests that combined with other provisions, the IRA could prevent between 76,000 and 119,000 asthma attacks and avoid 2,900 to 4,500 premature deaths in 2030.
• The IRA allocates $1 billion to help states adopt and implement high-efficiency and zero-emission building codes. Approximately two-thirds of this funding is dedicated to zero-energy building codes that align with the 2021 International Energy Conservation Code or equivalent standards, requiring high envelope performance and onsite energy generation.
• The report recommends that federal agencies implement more stringent appliance emissions standards, as the IRA incentives alone are insufficient to reach net-zero emissions by 2050. Policies targeting new buildings and equipment are estimated to be capable of reducing the sector's greenhouse gas emissions by 91 percent by 2050.
• The IRA establishes a $27 billion Greenhouse Gas Reduction Fund to mobilize private capital for clean energy projects. This includes $7 billion specifically for low-income and disadvantaged communities to deploy zero-emission technologies and $20 billion for general clean energy project financial and technical assistance.

APA

TALLACKSON, H., & BALDWIN, S. (2022). IMPLEMENTING THE INFLATION REDUCTION ACT: A ROADMAP FOR FEDERAL AND STATE BUILDINGS POLICY. Energy Innovation. https://energyinnovation.org/wp-content/uploads/Implementing-The-Inflation-Reduction-Act-A-Roadmap-For-State-And-Federal-Buildings-Policy.pdf

Chicago

TALLACKSON, HADLEY, and SARA BALDWIN. IMPLEMENTING THE INFLATION REDUCTION ACT: A ROADMAP FOR FEDERAL AND STATE BUILDINGS POLICY. Energy Innovation, 2022. https://energyinnovation.org/wp-content/uploads/Implementing-The-Inflation-Reduction-Act-A-Roadmap-For-State-And-Federal-Buildings-Policy.pdf.

Wikipedia

{{cite report |last1=TALLACKSON |first1=HADLEY |last2=BALDWIN |first2=SARA |title=IMPLEMENTING THE INFLATION REDUCTION ACT: A ROADMAP FOR FEDERAL AND STATE BUILDINGS POLICY |publisher=Energy Innovation |date=November 2022 |url=https://energyinnovation.org/wp-content/uploads/Implementing-The-Inflation-Reduction-Act-A-Roadmap-For-State-And-Federal-Buildings-Policy.pdf |access-date=17 August 2026 |via=Climate Insights Directory}}

BibTeX

@techreport{tallackson2022implementing, author = {TALLACKSON, HADLEY and BALDWIN, SARA}, title = {{IMPLEMENTING THE INFLATION REDUCTION ACT: A ROADMAP FOR FEDERAL AND STATE BUILDINGS POLICY}}, institution = {Energy Innovation}, year = {2022}, month = nov, url = {https://energyinnovation.org/wp-content/uploads/Implementing-The-Inflation-Reduction-Act-A-Roadmap-For-State-And-Federal-Buildings-Policy.pdf}, urldate = {2026-08-17}, note = {Indexed by Climate Insights Directory} }