The Investment Tax Credit (ITC)
This Changes Everything.
ResourcesInvestment Tax Credit (ITC)
The Inflation Reduction Act (IRA) of 2022, includes an Investment Tax Credit (ITC) for electrochromic glass in building projects.
HALIO, with assistance from independent law firm Foley & Lardner LLP, and input from other industry experts, analyzed how the ITC can apply to our customer’s projects.
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Stay in the know regarding the benefits of ITC for Electrochromic (smart) glass.
What is the Electrochromic Glass Investment Tax Credit (ITC)?
A 6 – 50% ITC for Electrochromic Glass projects was added to the Inflation Reduction Act of August 2022.
Smart Glass powered by HALIO is an electrochromic technology that is included in the ITC.
The net effect of the ITC on a typical HALIO project’s cost is to make smart glass as affordable as Low-E.
What are the Credit Rates through 2033?
Domestic Content Bonus
Requires all significant value-adding processes turning raw steelmaking materials into a finished steel product be done in the U.S. while allowing certain globally-sourced steelmaking additives and alloys.
Energy Community Bonus
Encourages projects in communities that have an economic reliance on fossil fuels and have job losses.
ITC Projects Timeline
How Does a 40% ITC Compare to Low-e?
Typically, Electrochromic smart glass will be as affordable as Low-e glass, and often even more affordable. The example below illustrates a 40% ITC, saving upfront costs, while delivering direct benefits of a smart glass building once occupied, including up to 22% energy savings, lower OpEx/maintenance, unobstructed views, and beautiful building aesthetics.
Electrochromic Smart Glass
Window System:
Investment Tax Credit of 40%:
Net Electrochromic Smart Glass Cost:
Low-e Glass
Window System:
Investment Tax Credit:
Net Low-e Glass Cost:
Other ITC Benefits
Direct Payments
- New Section 617 applies to tax-exempt entities (schools, municipalities, airports, hospitals…)
- Eligible taxpayers can claim direct cash payments in lieu of ITC
Transfer of ITCs
- New Section 6418 permits taxpayers (C-Corps, REITs, Partnerships…) to sell ITCs to other taxpayers for cash payments
Section 39 Adjustments
- Credit Carryback Period is extended from 1 to 3 years
- Credit Carryforward Period is extended from 20 to 22 years
The Time is Now!
Learn more about the benefits and impact of ITC by using HALIO Smart Glass. Talk with an expert about your next building project and how ITC can work for you.