The recent Inflation Reduction Act (IRA), along with the Infrastructure Investment and Jobs Act (IIJA) from last year, provide more than $25 billion for programs and tax incentives to improve the energy efficiency of, electrify, and reduce greenhouse gas (GHG) emissions due to existing homes. Even larger broad GHG emission reduction programs under the IRA could be used for home energy efficiency. But the programs use a variety of mechanisms to offer varying incentives with varying criteria for overlapping measures. This brief summarizes programs that will or could provide significant resources for energy efficiency retrofits for existing single family and multifamily homes.
This publication was revised on February 6, 2023, with clarifications and updates based on initial public guidance from federal agencies. A companion brief summarizes the laws’ funding for upgrades and efficient new construction of commercial and public buildings.
View the Brief
Ungar, L., and S. Nadel. 2022. Home Energy Upgrade Incentives: Programs in the Inflation Reduction Act and Other Recent Federal Laws. Washington, DC: American Council for an Energy-Efficient Economy. aceee.org/policy-brief/2022/09/home-energy-upgrade-incentives-programs-inflation-reduction-act-and-other