There is a lot that can be said about government spending. Most of the time it´s not all that positive...
However, the largest government spending act ever passed by the Senate is a fantastic opportunity for commercial roofing contractors to help get building owners new roof systems at a steep & significant discount.
The Inflation Reduction Act passed on August 16, 2020 allocates $369 billion to "Energy Security and Climate Change Investment."
Here is how that money is broken down..
The Inflation Reduction Act enables commercial roofers to have a very different conversation with building owners than before. Uncle Sam is willing to provide a credit upwards of $5/sq foot for energy saving building upgrades like solar, roofing, or HVAC.
That last sentence alone is significant. It´s even more significant if you are already offering cost saving commercial roof restoration systems that can be priced at $2.50 - $5.00/sq foot.
By no means am I saying that you can get building owners free roofs, but it could certainly be possible that is exactly what will happen if the energy efficient improvement is significant enough.
How exactly does the credit up to $5.00/sq foot work?
Previously, IRS Section 179D enabled commercial building owners to claim upwards of $1.80 per square foot. As of January 1, 2023, the credit value is now available on a sliding scale ranging between $2.50 to $5.00 per square foot.
The stipulation is that the building must exceed latest DOE determined ASHRARE 90.1 standards by a minimum of 25% to receive $2.50, rising in 10 cent increments up to $5.00 for each percentage point improvement up to 50% above 90.1
The way I see it, if you´re in the business of serving commercial property owners, it is simply your DUTY as a commercial contractor to inform and educate the building owners in your market about the Inflation Reduction Act. If the government has decided to make the $369 billion available, we may as well help commercial property owners make the best of it and get a piece of it in the process.
According to whitehouse.gov...
¨As small businesses save on energy costs, they will also help combat the climate crisis. The greater frequency and scale of natural disasters has put more small businesses and communities at risk of devastation and disruption. The Inflation Reduction Act’s historic action on climate change will provide economic stability and growth for Main Streets across the country.¨
Whether you choose to believe if the above statement is realistic or true, it´s certainly nice to have a brand new angle for starting conversations with more commercial property owners. (At a bare minimum)
How To Use The $369 Billion In The Inflation Reduction Act To Your Advantage
I personally think this act is one of the best things to happen to the commercial roofing industry since I first got involved in 2016. I´m always on the look out for new, creative, attention grabbing topics and angles that can open up conversations with building owners for the commercial roofers we work with.
From personal experience, I can tell you that I´ve never seen anything work better at getting the attention of prospects than a new government sponsored "handout". The solar tax credits comes to mind. The solar industry was overwhelmingly blessed by Uncle Sam´s money and many homeowners decided to upgrade to solar because of the credit incentive.
The updated Section 179D code is an amazing opportunity for building owners and the contractors who serve them.
If my hypothesis is correct, this act will unleash a perpetual flood of new building owners raising their hand and willing to entertain the thought of getting their roof replaced/restored.
We have already successfully began presenting this message to building owners and they are coming forward with excitement wanting to learn more.
I encourage you to do the same.
How To Put The Inflation Reduction Act To Work In Your Commercial Roofing Business
The name of the game is Education, Education, and Education. Act as if building owners in your market will never find out about this $2.50 to $5.00 square foot credit UNLESS you put the information in front of them.
First, I recommend creating a document outlining the program with your company logo and letterhead. Post this on your website, and then share it on your social media channels. Then, email a link to the document to your in house customer/leads lists.
To take it a step further, you can print it out and send a letter to building owners. Positioning yourself as a trusted advisor and consultant first is very important, as you already know.
Want To Be Connected With Building Owners Who Want To Speak To A Commercial Roofing Expert About The Inflation Reduction Act?
In the last 30 days, our educational marketing campaigns have reached been watched by 141,580 building owners on Youtube alone. From this, we generated 554 commercial roofing leads at an average cost of $92.95 per lead.
These commercial roofing leads go exclusively to our clients and are never shared or resold. If you would like an additional 8 to 12 quality conversations with building owners per month, there is nothing better than educational marketing sourced leads.
Educational Marketing warms up the lead before you ever even speak to them. From what our clients tell us, these leads are in a class of their own.
Would you like to see for yourself?
I invite you to book a call with our team so we may show you exactly, step-by-step, how our process works and how you can get commercial roofing leads that are already educated on the Inflation Reduction Act energy improvement credit in early as 3-5 days.
To your growth and success,