Pathways to Equity and Savings for Low-Income Households

The report examines the financial and energy impacts of the US Departments of Housing and Urban Development (HUD) and Agriculture (USDA) proposing to adopt the 2021 International Energy Conservation Code (IECC). It highlights that transitioning to the 2021 IECC could reduce energy consumption by 27% and save $14,536 in life cycle costs per single-family home. The analysis emphasizes that all-electric homes are cheaper to build and operate than gas-powered homes, and that the Inflation Reduction Act's 45L tax credit—offering up to $5,000 for Zero Energy Ready Homes (ZERH) and $2,500 for ENERGY STAR certification—makes high-efficiency construction financially viable, particularly in the Southeast US.

• The US Departments of Agriculture (USDA) and Housing and Urban Development (HUD) have proposed moving from the 2009 International Energy Conservation Code (IECC) to the 2021 IECC. This shift is projected to decrease energy consumption by 27% and provide $14,536 in life cycle cost savings for each single-family home, with positive cash flow expected within two years.
• The Inflation Reduction Act (IRA) provides the New Energy Efficient Homes Credit (45L), which offers financial incentives for new or renovated dwellings: up to $5,000 for those meeting Zero Energy Ready Home (ZERH) V2 criteria and up to $2,500 for those achieving ENERGY STAR certification.

APA

RMI (2023). Pathways to Equity and Savings for Low-Income Households. https://rmi.org/resources/pathways-to-equity-and-savings-for-low-income-households/

Chicago

RMI. Pathways to Equity and Savings for Low-Income Households. 2023. https://rmi.org/resources/pathways-to-equity-and-savings-for-low-income-households/.

Wikipedia

{{cite report |author=RMI |title=Pathways to Equity and Savings for Low-Income Households |date=11 August 2023 |url=https://rmi.org/resources/pathways-to-equity-and-savings-for-low-income-households/ |access-date=17 August 2026 |via=Climate Insights Directory}}

BibTeX

@techreport{rmi2023pathways, author = {{RMI}}, title = {{Pathways to Equity and Savings for Low-Income Households}}, institution = {RMI}, year = {2023}, month = aug, url = {https://rmi.org/resources/pathways-to-equity-and-savings-for-low-income-households/}, urldate = {2026-08-17}, note = {Indexed by Climate Insights Directory} }