Setpoint Blog

The Inflation Reduction Act: Putting Power Back in Your Wallet

22 Feb. 2023
The Inflation Reduction Act: Putting Power Back in Your Wallet

The Inflation Reduction Act is a governmental effort to raise revenue for businesses, lower the costs of prescription drugs, fund new energy, climate, and health care provisions, and reduce budget deficits. It is the most significant climate bill in history with an investment of $369 billion dollars toward a transition to cleaner energy consumption. But what we are really interested in are the impacts this has on businesses, and here is why you and your company should be too:

Affording Net Zero Goals Has Never Been Easier

Yes, you heard correctly. If your company has been postponing its net zero goals due to concerns about extra costs, it’s time to set aside those excuses. With the Inflation Reduction Act, it has never been easier, more convenient, affordable, and practical to transform your company into a net-zero firm. Not only can you reduce your carbon footprint, but you also have the opportunity to enhance your brand image and reputation by boosting Environmental, Social, and Governance (ESG) values that are increasingly critical for our environment, our people, and our ever-changing world. 

With substantial investments in the energy and climate industry, companies can now confidently expect to access a range of sustainable solutions that are both financially feasible and easily obtainable. This means that your company can take advantage of these services at a significantly reduced cost compared to the past, while also being able to access them with minimal effort. Investing in sustainability guarantees your company a solid, long-term investment, as sustainability is now an essential part of any successful and forward-thinking company. By incorporating sustainable practices, you can distinguish your company from your competitors and enhance your brand reputation as a socially responsible and environmentally conscious business. The fact is, sustainability is not going anywhere, and it has become a non-negotiable part of the corporate landscape, making it a crucial and profitable investment for any business. 

So make your investments now. Think of the future, be sustainable, and be net zero.

Leveraging Tax Credits to Your Advantage   

We all love tax credits and we all want tax credits. But most of us are not really sure how to use it to our advantage and how to get the most out of it. The newest Inflation Reduction Act (IRA) incentivizes people and companies to invest in energy-efficient solutions in return for tax credits. Using it wisely can be an extremely valuable financial tool. Here are three simple ways your company can benefit:

By transitioning your company’s transportation modes from regular vehicles to energy-efficient vehicles you are able to save 30% of your purchase costs through 2032. Meaning that the IRA will extend you a tax credit of 30% which translates into lower taxes, lower costs, and higher profits. Not only are you saving in your investment costs, but you are also contributing to the environment by positioning your company for the future. 

Another great strategy for tax credits is installing solar-powered systems that can generate clean energy. The IRA will grant you a 30% tax credit for installation costs, which could end up saving your company thousands in energy bills, which we all know is a great, great relief.    

We save the best for last because we take pride in being able to help your company with this one. The Inflation Reduction Act (IRA) offers a generous tax credit of $5 per square foot for businesses that install energy-efficient improvements in their buildings and facilities. This presents an incredible opportunity to substantially reduce your energy bills, and we at Setpoint are here to help you make the most of it. With Setpoint’s AI indoor climate automation system, you can achieve personalized climate control for your facility while consuming less energy than traditional systems. Our system provides better climate comfort while saving energy, making it the perfect choice for businesses seeking to maximize the benefits of the IRA’s tax credits. Our team is committed to helping businesses reduce their carbon footprint and become more energy-efficient.                                                     

Your tax credit strategy is energy-efficient vehicles, solar panels, and Setpoint. 

Go get it. 

Why Going Green Pays Off. Big Time.

Why should companies care about sustainability, net zero, and energy efficiency? Well, your customers care, they care a lot, and they will keep caring even more, which means you should too. Recent research data has shown that consumers are prioritizing more than ever the sustainability efforts of brands and services they choose to buy from, they are more conscious of the impact of their purchases. Meaning that you could sell or miss selling your product or service based on how sustainable, eco-friendly, and net zero your company is.

This survey made by Marketing Charts shows us various prompts that were asked of 4,000 adults in the US, UK, China, and Brazil. Some of the prompt questions include: businesses being responsible for playing a part in solving climate change challenges and that companies should put the people and the planet before profits. It is remarkable how all the prompts have a percentage above 80%, meaning that the grand majority is invested in expecting changes and responses from the corporate world fast.         

If your company is not somewhat sustainable or is not actively working on helping the climate change crisis, it could be left behind by its consumers. Demonstrating a steadfast commitment to sustainability can substantially enhance a company’s reputation and brand image, making it more attractive to consumers and investors alike. By prioritizing sustainability, companies can achieve a competitive advantage that translates into increased sales and revenue. Don’t risk disappointing your customers and losing out on business opportunities – take action now to implement sustainable changes that will ensure your company’s success. Attract more customers and investors, and set yourself apart from your competitors by making sustainability a core component of your business strategy. The benefits are clear, and the time to act is now. 

The key takeaway is that the Inflation Reduction Act can be a powerful tool for businesses to not only achieve their net zero goals, but also to accumulate tax credits, lower costs, increase profits, and attract customers who share their values. By utilizing this act strategically, businesses can not only improve their bottom line but also help our environment, creating a win-win situation. By implementing these changes, businesses can demonstrate their commitment to a greener future and attract customers who prioritize environmentally responsible businesses. This way, your business can become future-ready while also contributing to a sustainable world.

If you’re serious about achieving your sustainability goals, there’s no better first step than Setpoint. With our Climate Automation service, we offer a comprehensive and optimal solution for companies that want to not only meet their sustainability goals but also achieve their financial objectives. Energy efficiency is the future, and we are at the forefront of this movement. At Setpoint, our top priority is working with you to achieve your goals quickly and efficiently. Don’t just take our word for it – book a demo today and see for yourself why Setpoint is the ultimate choice for sustainable companies. Trust us, you’ll be pleasantly surprised by what we have to offer.