Cool roofs and hot savings

By Emma Peterson.

Learn how tax credits and incentives have made energy-efficient roofing more accessible than ever before.

Roofing contractors have been at the forefront of using cool roofs and walls to reduce energy consumption and decrease the commonality of urban heat islands (UHI). 2022 saw one of the big shifts in this area, with the U.S. Inflation Reduction Act making sustainable and cool options more available to homeowners, building managers and contractors to make more efficient roofs. This bill, which is the biggest U.S. bill to address combatting climate change, makes cool roofs and walls more accessible through expanded tax incentives.

In a report from the ICP Building Solutions Group, there is a summary of what this act has done. Overall, in the two years since the Inflation Reduction Act, we have seen over $300 billion invested in energy and climate reform. This money came in the form of “energy tax incentives, investment in the production of clean energy and tax credits aimed at reducing carbon emissions.” Check out the graph to see some of the incentives that were created:

• Homes: This is a program directed to homeowners (including multi-family homes). It offers up to $8,000 based on the household’s income level and total energy reduction.
• HEERA: With a focus on low-income households, this program incorporates general electric improvements and provides opportunities for spray foam and air sealing improvements.
• 25C: This program increases the tax credit amount up to $1,200 for qualified energy efficiency improvement during the year (this includes things such as air sealing and better insulation).  
• 45L: This gives credits to new residential construction builders that adhere to ENERGY STAR or Zero Energy (DOE) requirements.
• 179D: This is a tax deduction for architects, owners or tenants of commercial buildings that make energy efficiency improvements. This can be new buildings or renovations of existing buildings.

Making these cool roof and wall options more accessible is a key part of making a more sustainable and healthier built environment. By reflecting solar energy on the roof or more efficiently emitting heat through the walls, prioritizing the installation of these products keeps buildings cooler and at a more consistent temperature. The Cool Roof Rating Council (CRRC), which has been a leader in this sector of the industry since 1998, reports that not only do cool roofs and walls create a healthier environment inside and around the building, but they also create a more energy-efficient system that saves building owners, homeowners and property managers money.

Overall, these tax incentives have made it more accessible than ever to invest in energy-efficiency improvements and has made it a profitable space for contractors to focus on. To learn more, read the full report.