Navigating the Inflation Reduction Act Process with Trane

Quick Facts

Topics: Legislation and Incentives • Energy Services

The Inflation Reduction Act of 2022, with its expanded federal tax credits, grants and rebates, can help impact building infrastructure projects and help building owners improve aging infrastructure, support tenant health and utilize clean energy while helping to save money in the process. But knowing where to start and how to navigate the Inflation Reduction Act process requires people that can help you get the most out of all it can offer.

Trane’s comprehensive project design, construction management and implementation solutions help you follow the Inflation Reduction Act tax incentive regulations while enhancing benefits for infrastructure projects.

Understanding the Inflation Reduction Act

What is the Inflation Reduction Act?

The Inflation Reduction A ct aims to boost U.S. prosperity by accelerating domestic manufacturing, improving infrastructure resiliency and advancing equity. The Inflation Reduction Act is considered one of the largest investments in clean energy and infrastructure resiliency. Its estimated value, which includes uncapped tax incentives and regulations that are already impacting commercial and industrial buildings, and won’t likely be realized for several years, may ultimately be worth up to $3 trillion.

Key Challenges and Pitfalls

But capitalizing on the benefits isn’t always easy. Building owners may encounter challenges when leveraging the Inflation Reduction Act for facility improvement projects. These include eligibility issues like misinterpreting the specific implementation requirements or failing to maintain adequate eligibility documentation, such as proof of installation and manufacturer certifications. Challenges may include not keeping up with regulation changes and updates and overlooking additional state or other regulations that might impact the project. These challenges, both individually and cumulatively, may result in missed opportunities.

Navigating the Inflation Reduction Act with Comprehensive Solutions & Expert-led Support

Streamlining Inflation Reduction Act Requirements and Leveraging Benefits

We recognize that understanding and applying for tax credits and rebates may be challenging, which is why we’ll work with you every step of the way to help you take advantage of the available funding. Trane’s building technology and energy experts have already helped customers leverage the benefits of the Inflation Reduction Act, capitalizing on hundreds of millions of dollars’ worth of tax and utility incentives, while streamlining the process.

Many of the projects that qualify for federal tax credits and rebates expanded by the Inflation Reduction Act simultaneously qualify for local utility incentives that require the same technical support, offering a twofold financial benefit that may help make these projects even more affordable. Working with Trane to create facility improvement programs that are eligible for these expanded incentives helps building and business owners capture the value.

infographic displaying the steps of navigating the challenges of the inflation reduction act

Overcoming Challenges

The reality is that navigating the Inflation Reduction Act can be a challenging process and the dynamic eligibility requirements of tax incentive programs is a key example. Every project must be designed, constructed and measured to verify incentive-eligible improvements have been made and intended outcomes have been achieved. Further, many projects that qualify for these federal tax credits and rebates also qualify for local utility incentives that require the same technical support — a two-fold financial benefit that may help make these projects more affordable.

Working with Trane to help create comprehensive facility improvement programs that are eligible for these expanded incentives is one critical way building owners can help overcome its inherent challenges and leverage the benefits of the Inflation Reduction Act on behalf of their projects.

Why Choose Trane?

The tax credits and rebates expanded by the Inflation Reduction Act are marked with challenges that can potentially jeopardize projects if not properly addressed. The good news is you don’t have to be an expert. We can help support you with highly experienced and knowledgeable building and energy solutions experts to help guide your project through the process.

Trane’s comprehensive project design, construction management and implementation solutions approach helps meet Inflation Reduction Act eligibility requirements while capturing benefits for infrastructure projects. Whether you are just starting or already in the process of leveraging the tax credits and rebates, Trane is here to help you navigate the Inflation Reduction Act process and offer a successful project outcome.