Federal Standards and State Support Necessary for Inflation Reduction Act’s Buildings Benefits

This fact sheet from Energy Innovation outlines how the Inflation Reduction Act (IRA) provides foundational support for decarbonizing the United States building sector through rebates, tax credits, and funding for building codes, while emphasizing the need for complementary state, local, and Tribal government actions to ensure successful implementation.

• The Inflation Reduction Act (IRA) is projected to reduce United States greenhouse gas emissions by approximately 40 percent by 2030. Modeling by Energy Innovation Policy & Analysis LLC® suggests these clean energy provisions could result in annual household savings of $80 by 2030 and the creation of 1.2 to 1.3 million net new jobs in the same year.
• The IRA provides targeted financial support for low- to moderate-income (LMI) households, multifamily buildings, and underserved communities, with some incentives covering 80 to 100 percent of project costs for electrification and whole-home efficiency measures.
• The IRA includes several specific funding allocations for building decarbonization: $1 billion for the adoption and enforcement of high-efficiency and zero-emissions building codes; $2.50 to $5.00 per square foot for commercial building energy efficiency tax deductions; $25 million for zero-emissions technologies in government buildings; $2.15 billion for low-carbon building materials in federal construction; $145 million for the Tribal Electrification Program; and nearly $9.9 billion for high-efficiency, electric residential buildings.
• Despite IRA incentives, additional federal, state, and local actions are required to achieve climate stability due to the slow turnover of fossil fuel building equipment. Specifically, the U.S. requires more stringent appliance standards that favor highly efficient, all-electric equipment.
• Successful implementation of the IRA depends on state, local, and Tribal governments taking several actions: increasing capacity in state energy offices and Tribal governments to manage rebate programs; adopting zero-emissions building codes; updating utility system planning and rate designs; and supporting workforce development for contractors and builders.

APA

Energy Innovation (n.d.). Federal Standards and State Support Necessary for Inflation Reduction Act’s Buildings Benefits. https://energyinnovation.org/wp-content/uploads/IRA-Building-Provisions_One-Pager.pdf

Chicago

Energy Innovation. Federal Standards and State Support Necessary for Inflation Reduction Act’s Buildings Benefits. n.d. https://energyinnovation.org/wp-content/uploads/IRA-Building-Provisions_One-Pager.pdf.

Wikipedia

{{cite report |author=Energy Innovation |title=Federal Standards and State Support Necessary for Inflation Reduction Act’s Buildings Benefits |url=https://energyinnovation.org/wp-content/uploads/IRA-Building-Provisions_One-Pager.pdf |access-date=17 August 2026 |via=Climate Insights Directory}}

BibTeX

@techreport{energyinnovationndfederal, author = {{Energy Innovation}}, title = {{Federal Standards and State Support Necessary for Inflation Reduction Act’s Buildings Benefits}}, institution = {Energy Innovation}, url = {https://energyinnovation.org/wp-content/uploads/IRA-Building-Provisions_One-Pager.pdf}, urldate = {2026-08-17}, note = {Indexed by Climate Insights Directory} }