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

The report analyzes the impact of the Inflation Reduction Act (IRA) on the U.S. building sector, highlighting its potential to reduce annual emissions by 32 to 33 million metric tons of CO2e by 2030. It details various residential rebates (HEEHRA, HOMES), tax credits (25C, 25D, 45L), and commercial incentives (179D), while emphasizing that these must be paired with stricter appliance standards and updated building codes to overcome slow stock turnover. The document provides specific implementation guidance for State Energy Offices and utility regulators to ensure an equitable transition, particularly for low-to-moderate-income households.

• The IRA is projected to reduce annual building sector emissions by 32 to 33 million metric tons of carbon dioxide equivalent (MMT CO2e) by 2030, representing a 5 to 6 percent reduction relative to business-as-usual.
• Building sector emissions reductions are limited by slow appliance stock turnover and high upfront costs for retrofits, meaning the IRA alone is insufficient to achieve climate stability without additional federal, state, and local action.
• The IRA provides significant financial support for low- to moderate-income (LMI) households, with some incentives covering 80 to 100 percent of project costs for whole-home efficiency and electrification.
• Transitioning from fossil-fuel appliances to all-electric alternatives can significantly improve public health; the IRA's provisions could prevent 76,000 to 119,000 asthma attacks and avoid 2,900 to 4,500 premature deaths in 2030.
• The IRA includes a $1 billion fund for states to adopt high-efficiency and zero-emission building codes, which the report identifies as the fastest way to align future building stock with climate goals.
• The IRA's economic impact includes saving households $80 annually by 2030 and potentially creating 1.2 to 1.3 million net new jobs across manufacturing, construction, trade, and services by 2030.

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} }