Electrochromic Glass Added to Investment Tax Credit

The Inflation Reduction Act Opens the Door for a 30% Tax Credit on Electrochromic Glass

On August 16, 2022, the Inflation Reduction Act (IRA) of 2022 was passed by the US Congress and signed into law by President Joe Biden. The bill includes billions of dollars in spending on energy and climate change. Through this bill the federal government has extended and expanded the Investment Tax Credit (ITC) (Source). The ITC provides tax credits for the purchase and installation of energy producing and energy saving equipment. As part of the IRA bill, electrochromic glass has been added to the Investment Tax Credit (Source). This opens the door for a 30% tax credit on the purchase of dynamic glass.

“Smart glass” is the umbrella term for glass that can change tint, while electrochromic (EC) is a specific type of glass within the smart glass ecosystem. Electrochromic glass uses electrical current to dynamically change tint. The amount of voltage applied to the glass controls the tint. Low voltage electricity darkens the glass as ions and electrons transfer from the EC cathode to anode. When you reverse the applied voltage, the ions and electrons reverse course and the glass regains its transparency (Source). In conventional glass, the solar heat gain coefficient (SHGC) and visible light transmission (VLT) are fixed properties determined by the glass composition and surface coatings. The SHGC is the fraction of solar radiation transmitted through a window, door, etc.. The VLT is the amount of visible light transmitted through a window, door etc. (Source). These two properties directly impact the heating and cooling effects of the sunlight, as well as the amount of natural light entering a building. Electrochromic glass allows you to dynamically change SHGC and VLT over time – matching the course of the sun throughout the day and the changing of seasons throughout the year.

For years, electrochromic glass has been lauded as the technology next up to radically transform our built environment, reduce energy usage, and mitigate carbon emissions. But high costs and complexity has held back that vision. While this tax credit is a big step for the industry, it doesn’t eliminate the incredibly complex nature of installing wired electrochromic glass and in most cases still won’t bring price parity with standard glass. Andluca’s UV solar platform to render smart glass wireless is the enabling technology necessary to reach the full vision of widespread adoption.

Creating a wireless smart glass product eliminates the cost of wires and mitigates the need for electrician labor or any extra training for installers. These products can be installed just like a standard window or facade. That innovation in combination with this tax credit is what will truly deliver breakthrough in this industry. So, while we celebrate this step for the smart glass space, we remain committed to further enabling this industry to be all that many believe it can be.

About Andluca Technologies:

Andluca Technologies, a Princeton University spin-out, is developing wireless smart glass technologies for improving energy efficiency, occupant comfort, and security in buildings. The company's modular platform comprises proprietary UV solar glass and sophisticated embedded systems that will enable a wide range of smart glass products via partnerships with window and facade manufacturers. These wireless products can be installed like a standard window or facade, significantly reducing cost, time, and embodied carbon of installation. Learn more about Andluca here: https://andluca.com/