Both homeowners and real estate investors may prove to be the beneficiaries of the recently passed Inflation Reduction Act, according to a new report.
While the legislation is primarily centered on reducing prescription drug costs and making healthcare costs more affordable, the bill also provides what is called a green tax incentive for homeowners, notes the publication Realty Biz News.
That incentive means that homeowners may be able to secure a credit of up to $1,200 for such house upgrades as replacing an aging heating and cooling system; reinsulating houses; and installing rooftop solar panel systems.
For real estate investors, the green tax incentives will allow for federal tax deductions upon purchasing an energy-efficient building or upgrading an existing structure with new energy-efficient features.
But the publication advises that real estate investors may need tax experts to correctly file for the new deductions, as well as an engineer to “certify the energy-saving amounts.”
In a statement, the Sierra Club has lauded the green potential of the Inflation Reduction Act, declaring: “We will build safer, cleaner, and more cost-effective buildings and homes.”
While some real estate industry groups have been wary of the legislation, the National Association of Realtors remarked: “When one considers all the real estate tax increase proposals that were recommended over the past couple of years, the final bill is very good for the real estate industry.”
By Garry Boulard
