The energy-efficient home tax credits and rebates created by the Inflation Reduction Act (IRA) create an incredible opportunity for contractors across the country. Although many states are waiting on the U.S. Department of Energy to publish guidelines before they can make rebates available to homeowners, there are a few things contractors can be doing now to prepare.
Stay Up-to-Date
Among other goals, the Inflation Reduction Act endeavors to improve the energy efficiency of the U.S. housing market, but its success depends largely on high-quality HVAC and home performance contractors like insulation, air sealing, plumbing, etc. They will be expected to deliver the goods and services that qualify for the High-Efficiency Electric Home Rebate Act (HEEHRA) and Home Owner Managing Energy Savings (HOMES) rebates. While these rebates are not available just yet, contractors should begin exploring how they plan to serve homeowners looking to participate in these programs.
Contractors can be reviewing the specifics of the rebate and tax credit programs to understand the eligibility criteria and requirements. Assess which projects and equipment installations are eligible and consider how these opportunities align with your business capabilities. Consider expanding your products and services or partnering with other companies in order to maximize your market share. By planning ahead, you can strategically position yourself to take advantage of the available incentives, ensuring that your projects meet the necessary criteria and maximizing your chances of success.
Related Post: Maximize Your IRA Success by Providing More Services
Prepare Your Business
The highly-anticipated HOMES rebate program will incentivize many homeowners to invest in energy efficiency measures who may have otherwise been undecided or uninterested due to cost. Prepared contractors know that HOMES rebates are required to be accompanied by a third-party certification, which ties the value of each install using program dollars to home value. This requirement enables program administrators to protect the program’s integrity and incentivize homeowners to participate by empowering them to recoup their investment when they sell or refinance.
Thankfully, Pearl Network Contractors can already provide third-party certifications that do just that. Pearl accepts only the most elite U.S. contractors who demonstrate the highest standards:
Quality governance: Company culture, mission, leadership
Quality workforce: Technical and sales training, providing access to a learning management system (LMS) or creating their own, offering pathways for career advancement
Quality customer experience: Rank high on review sites, assess customer satisfaction, effectively address customer complaints
Quality business operations: Maintain all licenses, employ appropriate permits, effectively insure the operation, employ proper design and installation practices, thoroughly evaluate business opportunities and identify risks and benefits, develop and execute business plans
Sustainable growth: Growth can be demonstrated in terms of revenue, employees, locations, knowledge, investing in new technologies and systems (from inventory control to customer relationship management software)
Commitment to community: Support the community, whether that’s defined as locally or globally
Technical and thought leadership: Engage with industry associations
As members of the elite Pearl Network, contractors can issue third-party certifications of their installations, assuring their quality work and equipment and enabling homeowners to build equity in their homes. Our network contractors are also actively preparing for Inflation Reduction Act program roll-outs so they’ll be ready to help homeowners as soon as funds become available in their state.
