IN-24-C017 - Inflation Reduction ACT 2022 - §179D Tax Deduction & §45L Tax Credit PDF

This document explores the transformative impact of Sections 179D and 45L within the United States Internal Revenue Code (IRC) on promoting energy-efficient practices in building construction. Enacted under the Energy Policy Act of 2005, these provisions offer tax incentives to encourage the adoption of sustainable building technologies and practices. Over time, these provisions have evolved and undergone enhancements, resulting in the Inflation Reduction Act (IRA) of 2022. This act introduces significant changes to foster sustainable building practices, encourage broader participation, and elevate energy efficiency standards. This document examines the historical origins of §179D and §45L, the amendments introduced by the IRA, and their combined influence on driving environmentally responsible building advancements. It underscores the substantial impact of these provisions on incentivizing innovation, promoting workforce development, and catalyzing the adoption of energy-efficient solutions within the construction sector.