American Rescue Plan funding to improve ventilation and indoor air quality in buildings

States and local governments can draw on $350 billion in federal COVID-19 aid from the American Rescue Plan to improve ventilation systems in buildings where people are gathering, including schools, hospitals, nursing homes, restaurants, office buildings, commercial buildings, multi-family residential buildings and transportation hubs. This funding can be used for the assessment, updates, repairs, installation and other projects to improve ventilation and indoor air quality in buildings. Funds must be obligated by December 31, 2024 and spent by December 31, 2026. The Treasury Department recommends that recipients ensure that the inspection, testing, commissioning, maintenance, repair, replacement and upgrading of ventilation systems is performed by a skilled, trained and certified workforce.

An overview of this funding is available on the Treasury Department’s website, and its guidance regarding how the funds can be used to install and improve ventilation systems is outlined on page 16-19.

Additionally, schools can draw on $122 billion in federal funding through the Elementary and Secondary Schools Emergency Relief (ESSER) Fund, provided in the American Rescue Plan to improve indoor air quality and ventilation in buildings. This funding is available to K-12 schools until September 20, 2024. Guidance and information on how this funding can be used to improve ventilation in schools is available on the Department of Education’s website.

Bipartisan Infrastructure Law funding to improve energy efficiency and indoor air quality in buildings

The Bipartisan Infrastructure Law provides billions of dollars to different types of buildings – including transportation facilities, public schools, nonprofits, airport terminals, federal buildings and residential and commercial buildings – to improve energy efficiency, ventilation and indoor air quality in buildings. Different programs are available for different entities, such as state, local, tribal and territorial governments as well as other partners, and each program has a different program deadline. Click here for a guidebook about these programs, including eligible recipients, available funding, eligible uses and key dates.

Inflation Reduction Act funding to improve energy efficiency and indoor air quality in buildings

The Inflation Reduction Act contains $369 billion in climate and energy spending. This includes grant programs and tax credits to incentivize installation of clean energy technologies in homes and commercial facilities. Below is a summary of tax credits and rebates funded through the legislation. Chick here for a fact sheet on the bill.

Tax credits and rebates for commercial and residential building energy efficiency:

Energy Efficient Commercial Buildings Deduction (179D)

Allows building owners that install qualifying energy efficient systems in buildings to take a tax deduction when constructing a new or improving an existing commercial or government building.

Energy Efficient Home Credit (45L)

Rewards home builders and owners of multifamily housing apartment complexes when they make energy efficiency improvements.

Credit for Energy Efficiency Home Improvements (25C)

Rewards homeowners that make energy efficiency improvements, including performing energy audits and installing certain heat pumps.

Residential Clean Energy (25D)

Extends the tax credit for the purchases of residential clean energy technology – including solar electricity, solar water heating, fuel cells, geothermal heat pumps, small wind energy and qualified biomass fuel property – until December 31, 2034.

Home Energy Performance-Based, Whole-House Rebates (HOMES)

Funding for states to develop and implement a HOMES rebate program to provide rebates to homeowners to reduce home energy bills through energy efficiency retrofits.

High-Efficiency Electric Home Rebate Program

Funding for states and tribal governments to implement a high-efficiency electric home rebate program. Rebates will be given for a number of activities, including heat pump installation.