Builders seeking to improve home energy efficiency, indoor air quality and building envelope performance now have even more reason to look to reflective insulation and radiant barriers as part of the total home package.

The Inflation Reduction Act (IRA) provides significant tax incentives to encourage the use of energy-efficient materials, including reflective insulation and radiant barriers, in new and retrofit building construction projects.

For eligible single- and multi-family builders, the IRA, launched Jan. 1, brings back the popular 45L federal tax credits, which expired in 2021.

Upgraded 45L Tax Credits Explained

Unlike the previous version of 45L, the new tax credits are not limited to residential structures that are three floors or lower. The updated 45L credits, which expire in 2032, provide even more financial incentives to build green than ever before. The incentives are based on the two primary energy efficiency programs in the United States.

Energy Star

Energy Star rated single- and multi-family residences are at least 10% more efficient than homes built to code and achieve a 20% efficiency improvement on average

45L incentives

  • Single-Family Homes: $2,500 tax credit per home

  • Multi-Family Buildings (apartments, senior living facilities, condos): $500 credit per unit

Department of Energy Zero Energy Ready

Department of Energy Zero Energy Ready rated single- and multi-family residence are constructed with energy efficiencies and renewable energy sources to meet zero net energy goals.

45L incentives

  • Single-Family Homes: $5,000 tax credit per home

  • Multi-Family Buildings (apartments, senior living facilities, condos): $1,000 credit per unit

Fi-Foil Solutions for Maximizing Federal Tax Credits

For decades, builders seeking ways to improve home energy efficiency have turned to Fi-Foil, an industry leader in high-performance reflective insulation and radiant barriers. Today, Fi-Foil’s products make even more sense as energy-efficient homes become the norm.

Fi-Foil’s wide line of attic radiant barriers, reflective insulation, air barriers and related products work to lower Home Energy Rating Scores (HERS®), add R-value and improve indoor air quality. Fi-Foil’s products also have other advantages.

Less Waste

Fi-Foil reflective insulation and barrier products are easy for installers to position fast and accurately, especially in small or tight spaces. Since there’s less cutting, trimming and fitting, there’s less waste when compared to rigid board or spray foam insulation.

Fi-Foil’s SkyFlex Flexible Sheet Air Barrier is packaged in compact 500-square-foot rolls so it’s easier to store, reducing the risk of the product getting damaged on the jobsite.

Boosted Insulation Performance

Fi-Foil’s reflective insulation adds R-value to traditional batt or spray foam insulation when installed as a hybrid system with a minimum ¾-inch enclosed air space.

Fi-Foil’s HY-Fi® Hybrid Insulation System adds up to R-7.1 when used in conjunction with fiberglass batt or spray foam insulation.

Reduced Labor Costs

Fi-Foil’s radiant barriers and reflective insulations are lightweight, easy to handle and simple for professional installers, reducing time spent on clean-up and improving overall labor efficiency.

Fi-Foil’s Flex Foam Reflective Insulation comes in 250-square-foot lightweight rolls that are equal to eight sheets of foam board insulation.

Improved Efficiency

Fi-Foil’s radiant barriers help HVAC units and ducts work to optimal performance by blocking heat gain in the attic to keep homes more comfortable and energy-efficient, year-round.

Fi-Foil’s Silver Shield™ Attic Radiant Barrier reduces attic temperatures up to 30% in the summer and improves HVAC system and duct performance up to 50%.

For more information about any of Fi-Foil’s high-performance insulation systems, visit call (800) 448-3401.

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