Legislation + Regulation, Lighting Industry

IRA and IIJA Impacts On Commercial Lighting Upgrades

IRA and IIJA Impacts On Commercial Lighting Upgrades


The IRA provides $400 Billion in federal funding for clean energy carbon reduction to address climate change. The IIJA provides $550 Billion in federal funding, over the next 5 years, for infrastructure, including EV charging infrastructure, as well as numerous projects that often include lighting, such as bridges, tunnels, highways, railway improvements, and more.

The IRA opens up significant funding for non-profits, including many schools and healthcare organizations to reduce carbon emissions, and these can include lighting upgrades. Previously, tax credits were typically given to for-profit entities. The IIJA funding similarly benefits non-profits in ways that historically weren’t possible.

Businesses and tax-exempt organizations can now benefit from Section 179D Energy Efficient Commercial Buildings Tax Deduction for energy-efficient projects. Beyond 179D, companies and non-profits can use other tax credits for upgrades and construction projects. For example, the Section 148 Investment Tax Credit (ITC).

Other relevant funding programs in the IRA & IIJA include:

More information is available in a great article by EC&M here.

Image: Pexels.com


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David Shiller
David Shiller is the Publisher of LightNOW, and President of Lighting Solution Development, a North American consulting firm providing business development services to advanced lighting manufacturers. The ALA awarded David the Pillar of the Industry Award. David has co-chaired ALA’s Engineering Committee since 2010. David established MaxLite’s OEM component sales into a multi-million dollar division. He invented GU24 lamps while leading ENERGY STAR lighting programs for the US EPA. David has been published in leading lighting publications, including LD+A, enLIGHTenment Magazine, LEDs Magazine, and more.


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