President Biden signed into law the Inflation Reduction Act, which includes numerous provisions to help decarbonize the US economy, including the addition of a new tax credit for dynamic glass. The bill added electrochromic glass to Section 48 of the Internal Revenue Code, commonly referred to as the Investment Tax Credit (ITC). The credit can cover up to 30% of the costs associated with dynamic glass, moving it towards cost parity with traditional glazing and shading solutions.
The passage of this bill is both a recognition of the decarbonization potential of electrochromic glass as well as the importance of the tax code as a market driver for newer technologies. „The ITC has a long track record of stimulating increased investment in renewable energy sources such as wind and solar. We applaud Congress and the Biden Administration for recognizing the importance of dynamic glass as a tool to combat climate change, while simultaneously improving the health and well-being of building occupants,” said Michael Lane, VP of Sales for SageGlass. „This is a true game changer for the industry,” Lane continues. „Dynamic Glass has proven itself for years in larger and larger applications, but first cost has remained an obstacle to large-scale adoption. This tax credit can go a long way towards making the technology more accessible.”
The bill also contained additional changes for the Investment Tax Credit (ITC) which has a direct bearing on dynamic glass, including provisions for direct pay and credit transfer mechanisms. These new tools potentially enable certain tax-exempt entities to benefit from the credit [1]. „There are lots of important details related to credits like this and we look forward to consulting with our customers to help them understand the nuances of these changes,” said Lane.
