Bob Eaton, a managing partner with Day & Night Solar, Collinsville, Ill., offered NECA attendees insight into how to take advantage of the federal government's Inflation Reduction Act’s (IRA) financial stimulus for solar installations. Eaton says that in addition to providing tax breaks for solar projects, the IRA has allocated $370 billion in funds for investments that will lower energy costs for families and small businesses; accelerate private investments in clean energy solutions in every sector of the economy and every corner of the country; strengthen supply chains for everything from critical minerals to efficient electric appliances; and create new jobs in the renewables field and related green industries.
Eaton told attendees that to get the IRA tax incentives, they must follow strict guidelines on the amount of union labor employed on solar projects, and that in particular they should check on how many apprentices need to be working on a project to get the funding, or else risk income tax audits on their business for these projects.
There are several other potentially lucrative IRA tax incentives that contractors can utilize, including a 10% bonus for using products with domestic content; 2% for the use of steel manufactured in the United States and 10% for completing projects in low-income areas.
