Shift the Power with the Inflation Reduction Act (IRA)

Shift the Power.
5 min readDec 21, 2022


Make your buildings more efficient and reduce energy costs at the same time

By: Abhay Ambati, Sylvie Binder, and Piper Fialkoff


A future of energy-efficient, smart buildings is now more accessible than ever, with billions of dollars in tax credits and rebates made available by the recent passage of the Inflation Reduction Act (IRA). A large proportion of the incentives are allocated based on the ability to reduce overall energy consumption. This extra push for ongoing energy efficiency highlights the importance of installing and utilizing advanced monitoring technology to ensure that environmental, social, and governance (ESG) standards are continuously met.

To access these energy incentives, multifamily buildings will need to outfit common areas, apartments, and commercial facilities with energy-efficient appliances, lighting, thermostats, and environmental sensors to pinpoint where they are excelling and where they have room to improve.

Immersing in the Image

Logical Buildings is an industry-leading sustainability, smart building, climate tech, and virtual powerplant software and solutions provider for the built world. Our revolutionary technologies combat climate change by empowering residential, commercial, and industrial energy consumers to earn money, enhance building health, and reduce carbon footprint through award-winning, user-friendly software, and mobile apps.

The passage of the IRA marks a pivotal moment in the shift to decarbonize our built environment. Buildings across the nation will be rewarded for every step they take towards decarbonization and energy efficiency — and Logical Buildings is here to help!

With artwork by Nicole Kelner, we wished to focus on four key elements of the IRA that will make reducing emissions, shifting to renewable energy, and electrifying everything more affordable and accessible.

Multifamily Buildings

One of the rebates available is the Home Energy Performance- Based, Whole- House Rebate Program (HOMES), which provides rebates to multifamily building owners and aggregators for reducing energy consumption of their properties.

Overall energy consumption can be reduced by investing in on-site, renewable energy infrastructure, battery storage, cogeneration, and additional energy-efficient projects. Equipping buildings with load flexibility and participating in grid services programs are also simple, cost-effective ways to drastically reduce a building’s consumption.

Outside of building retrofits, the key to sustainable energy reduction relies on whole-building connectivity and analysis. By utilizing low-cost IOT sensors and actuators, buildings can access their energy data from anywhere at any time, creating a repository of knowledge that will enable them to cut excess energy consumption.

Home Energy Performance- Based, Whole- House Rebate Program (HOMES)

Figure 1, H.R.5376 — Inflation Reduction Act of 2022, SEC. 50121, STAT. 2035

If you are renovating or retrofitting your building, send us an email at to learn how IRA can apply to your property.

Looking to Build? Utilize the Extended Energy Efficient Home Credit

Investing in smart, energy-efficient buildings should always be the driving factor behind new construction. New and extended tax credits and rebates under the IRA ensure that new constructions utilize zero-energy and smart technology, ushering in the future of smart, efficient buildings. The updated New Energy Efficient Home Credit (45L) provides new requirements and higher benefits for units sold or leased from January 1, 2023 through December 31, 2032.

Logical Buildings offers a slew of pre-development services, utilizing utility, state, and these new federal rebates to ensure projects are completed sustainably and cost-effectively. We get excited about energy efficiency just Like Kids in a Candy Store.

Figure 2, H.R.5376 — Inflation Reduction Act of 2022, SEC. 13303, STAT. 1952

If you are in pre-development constructing and designing multifamily buildings, send us an email at to learn how IRA can apply to your specific project.

Renewable Energy

The phrase “Electrify Everything!” has been bouncing around for years, a prelude to a new era of infrastructure that isn’t reliant on fossil fuels. However, it will take quite some time — and significant investments — for electricity to be completely free of carbon-emitting fuels. Another exciting element of the IRA is the delineation of new rebates and credits for investments in renewable energy infrastructure such as solar panels and wind turbines.

Logical Buildings can oversee the implementation of energy efficiency and renewable energy projects, and has numerous trusted partners in wind, solar, energy storage, and EV charging infrastructure.

Figure 3, Four Ways the Inflation Reduction Act’s Tax Incentives Will Support Building an Equitable Clean Energy Economy [Fact Sheet]; and H.R.5376 — Inflation Reduction Act of 2022, SEC. 13301, STAT. 1946.
Figure 4, Nelson, Beth. “Inflation Reduction Act: What Every Real Estate Investor Should Know.” Evergreen Small Business, 15 Aug. 2022; H.R.5376 — Inflation Reduction Act of 2022, SEC. 13403, STAT. 1966

Additional Climate Resilience Projects

An additional $837.5 million for the U.S. Department of Housing and Urban Development (HUD) is earmarked to provide grants or loans to affordable housing owners who implement projects to improve energy or water efficiency, enhance indoor air quality or sustainability, implement the use of zero-emission electricity generation, utilize low-emission building materials or processes, invest in energy storage, building electrification, or address climate resilience.

Closing Thoughts

Working at the intersection of smart buildings, sustainability, and climate tech, Logical Buildings is thrilled by the forthcoming applications of the IRA on the built environment. While multifamily buildings clearly have their choice of incentives to fund their transition to electrification and energy efficiency, it’s critical that they also invest in adequate building controls and sensors. Having real-time energy data and a fleshed-out system of sensors and benchmarking tools will enable buildings to identify energy consumption hotspots, inefficiencies, and areas that can be improved upon to decarbonize successfully.

With the plethora of incentives from the IRA, tackling climate change through building decarbonization has never been more exciting and accessible. Feel free to send us an email to hear more about our services and how they can help you further your sustainability and smart building goals. We’d love to hear from you!

If you are interested in learning more about how smart thermostats, EV charging, renewable energy, and battery storage can add revenue to your bottom line, you can email us at

The above article is meant to provide a high-level overview of available tax incentives under the Inflation Reduction Act and does not constitute tax guidance. This article is current as of December 2022.



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