Inflation Reduction Act
Designing to Maximize Funding, Lower First and Operational Costs, while Decarbonizing Buildings
About CMTA
CMTA was founded in 1968 and is recognized as a national leader in high performance, sustainable design within the engineering industry. Our firm has leveraged our expertise in high performance, energy-efficient design into a nationwide practice that includes consulting engineering, performance contracting and zero energy design, technology solutions, and commissioning services. In addition to engineering great building systems, we invent products, set national goals, and work to transform the market to improve results for everyone. We define our innovative approach to engineering as — Building Science Leadership.
Zero Energy + Decarbonization
A leader in zero energy / zero carbon design, we have designed 9 million SF of zero energy projects and possess 15+ years of data to make impactful design decisions. We explore beyond system selection to look at the project as a whole exploring energy and carbon reduction without adding project first costs. We are trusted partners to our owners, helping understand local energy and carbon reduction guidelines, possible tax credits for high-performance, and funding mechanisms for projects.
Our Consulting Expertise
MEP Engineering
Zero Energy / Carbon Engineering
Renewable Energy & Sustainability Engineering
LEED & WELL Building
Certification Consulting Energy Modeling
Commissioning Services (Cx)
Technology / Security
Infrastructure Design
Performance Contracting
Construction Administration
Energy as a Service (EaaS)
1,000+ Employees
44 Offices Nationwide
240 Professional Engineers
165 LEED APs
32 WELL APs
26 Commissioning Agents
Building Science Leadership
— It’s our approach to every project.
From new construction to remodels, Building Science Leadership allows us to apply our vast expertise to deliver unprecedented results. It gives us the ability to deliver exceptional value to all of our partners.
First 30
This is a collaborative, immersive process that goes beyond standard systems analyses. We strive to be true partners invested in the success and wellbeing of the occupants of the buildings with a holistic design approach.
Data-Driven Design
Collaborate, innovate, create, and evaluate are the foundational concepts of our performance-based design philosophy. Our success is measured using real data, collected over time and proven in realworld applications.
Design Innovation
We invent products, fill gaps in the industry and are transforming the market with innovative solutions.
Occupant Health and Wellness
We deliver the best value that extends beyond cost to improve human health while exceeding energy savings expectations.
National Energy Goals
We work to achieve sustainable energy independence and are a leader in the development of Zero Energy building designs.
Research
We continuously measure and verify energy usage, investigate and test new technologies, and survey occupants to determine performance outcomes.
Zero Energy + Decarbonization
CMTA’s zero energy and decarbonization strategy is simple –design for drastic energy reduction, then consider renewable energy options. And while decarbonization looks at overall carbon emissions reduction, lowering the project’s energy use is an important piece in that process.
CMTA strives to be on the cutting edge of energy and carbon reduction driven by our innovative teams, research-based ideas, and data-driven results. This ideal is supported by our completed and in-progress projects as well as the positive impact of our projects on our owners and end-users.
10M+ SF in Zero Energy / Zero Carbon
Facilities
46M+ SF
Projects Operating Under 30 kBTU/SF/Yr
121M+
SF
Decarbonized Buildings & Campuses
= Zero Energy Ready Project
Beyond Engineering Consulting Services
In addition to acting as engineer of record, CMTA also functions as sustainability and wellness consultants. Our team members act as mentors and facilitators to help a design team and owner set goals and identify the key steps to be taken during design and construction.
Our experienced teams have led hundreds of charrettes for various project types, collaborating with project owners and stakeholders to set facility goals, including energy reduction, occupant health and wellness, and building certifications such as LEED, WELL, or Energy Star. In addition, our team works to challenge both designers and owners to achieve exceptional results within the project budget and timeline while improving the project for the greater good.
Achieving Certifications
Although third-party building certifications are not a goal for every project or owner, our success in guiding projects through the process of achieving certifications is another way we can quantify our effectiveness as a leader in sustainability.
206 LEED Projects
22 Platinum; 86 Gold; 70 Silver; 28 Certified
8 WELL Projects
4 Gold; 1 Silver; 3 Certified
700+ ENERGY STAR projects scoring over 75
The single most important piece of legislation for our industry in a lifetime.
Signed into law on August 16, 2022
Inflation Reduction Act Overview
Investment Tax Credit (ITC)Increases
Green systems / technologies
Direct Payment to Not-forProfit Owners
179D Increases
30% Base Tax Credit Installed efficiency / generation
Community
How the IRA Will Affect
United States Emissions
Annual change in net United States greenhouse gas emissions due to the IRA relative to current policy scenario*
*Estimates. In million metric tons of CO2-equivalent (Mt CO2-e)
Source: Rapid Energy Policy Evaluation & Analysis Toolkit
Our IRA Approach
CMTA proactively designs solutions that maximize IRA funding opportunities while minimizing first and operational costs — all while decarbonizing the building.
By working closely with our clients to understand their unique financial situation and infrastructure needs, we facilitate a smoother pathway to securing IRA funding, empowering them to make informed decisions based on verifiable data and tailored guidance. We streamline the construction requirements by providing direction and documentation, file the necessary IRS forms, and assist the owner’s internal accounting staff to maximize IRA dollars on each project.
To date, CMTA is working with 55 clients on IRA submissions for 2023-2025 totaling over $130 million in federal funding.
Data-Driven Decision Making
Our data-driven design approach helps owners select systems and products that realize significant energy savings and reduce ongoing operational costs over the life of an asset. By examining whole-life (life cycle) costs, we compare initial costs and operating costs to identify the option that maximizes net savings benefits over time — especially when factoring in IRA incentives.
HVAC Replacement Options
$6M
$5M
*Owner / project still finances the full amount
Best Value Solutions
First Costs
Minimize upfront costs while achieving the highest value
Plan for the future
Right-size equipment
Invest holistically in the building
Health & Well-Being
Improve occupant satisfaction
Make a positive impact on occupant wellbeing
Environmental Stewardship
Achieve significant reductions in energy costs
Reduce carbon emissions & air pollutants
Risk Management
Maintenance / Operations
Provide simple, easyto-maintain systems
Minimize unplanned system downtime
Increase redundancy & improve control
Reduce susceptibility to regulatory issues
IRA Technologies
Solar Energy
Wind Energy
Geothermal Energy
Ground Source Heat Pumps
Fuel Cells
Microturbines
Combined Heat and Power
Energy Storage
Biogas
Waste to Energy
Dynamic Glass
Microgrid Technology
Electric Vehicles
Electric Vehicle Charging
Infrastructure
Carbon Sequestration
Advanced Manufacturing
Clean Hydrogen
Zero Emission Nuclear
Sustainable Aviation Fuel
Biodiesel Renewable Fuel
Energy Efficiency
Elective Pay Election Filing
Pre-filing Required
A pre-filing registration is a required electronic process for all entities that intend to make elective payment election.
Forms Required
990-T & Form 3800
Timing
Elective pay is only available after an applicable credit is earned and able to be claimed on the relevant annual tax return. In general, payments occur after the tax return is processed.
Applicable Entities
Tax-Exempt Eligibility
501(a), 501(C), and 501(d): Public charities, private foundations, social welfare organizations, labor organizations, business leagues and others. It also includes religious or apostolic organizations.
State, Local, & Political Subdivisions
States, political subdivisions, and their agencies and instrumentalities are all eligible for elective pay. This includes the District of Columbia. It also includes cities, counties, and other political subdivisions. Water districts, school districts, economic development agencies, public universities, and hospitals that are agencies and instrumentalities of states or political subdivisions are also included.
Understanding a Project’s Rate
Base Credit: 30%
The base credit is 30%, but drops to 6% if >1 megawatt alternating current (MW ac) and does not meet prevailing wage & apprenticeship standards. All ITC technologies combine toward the 1MW limit. Prevailing wage — Pay all contractors prevailing wage (including repairs up to 5 years after project) Apprenticeship — 15% of work completed by certified apprentices
Domestic Content: 10%
Additional 10% credit if project is over 1MW and requires direct pay (e.g. owner is non-taxable entity).
Domestic Content
100% of steel and iron must be U.S. manufactured Goods must be 40% U.S. manufactured through 2024, 55% by 2027
Existing Energy Communities: 10%
Additional 10% credit if project is located in an energy community. This credit advances commitments to support and revitalize the economies of coal and power plant communities. Check your project site to determine whether this bonus credit applies: https://energycommunities.gov/energy-community-tax-creditbonus/
Existing Energy Communities
Projects located in areas with significant extraction jobs in coal, oil, or natural gas
Projects in brownfield sites
IRA Impact — Geothermal Systems
Previous Policy
10% Investment Tax Credit (ITC)
Geo field, water-source heat pumps (WSHP), pumps, piping, ductwork, soft costs
Tax-exempt entities – did not qualify
Tax credits – non-transferable
No special credits
New Policy
30% Investment Tax Credit (ITC)
Geo field, water-source heat pumps (WSHP), pumps, piping, ductwork, soft costs
Tax-exempt entities – direct pay option
Tax-paying entities – sale of credits
Prevailing wage and 15% apprenticeship requirements
Contingencies
Must meet prevailing wage/apprenticeship requirements
Pay all contractors prevailing wage (including repairs up to 5 years after project)
15% of work completed by certified apprentices
Unless:
Less than 1MW of thermal output (~284 tons; 114,000 SF)
Construction begins before 60 days after IRS guidance
50% of heating/cooling BTUs must come from geo
After 2026, domestic content credit adder required for direct pay
IRA Impact — Solar Systems
Previous Policy
26% Investment Tax Credit (ITC)
No Production Tax Credit (PTC)
1-year credit carryback
New Policy
30% Investment Tax Credit (ITC) Up to 70% with credit adders
Direct pay option
$0.026/kWh Production Tax Credit (PTC)
3-year credit carryback
Credits can be transferred to another entity
Thermal Energy Storage
Energy Storage Systems (ESS) play a crucial role in establishing a sustainable electric grid, enabling higher levels of adoption — potentially up to 100% — of intermittent generation sources like solar and wind.
By capturing excess thermal energy during periods of low demand and releasing it when needed, thermal energy storage (TES) systems help to reduce reliance on fossil fuels and mitigate greenhouse gas emissions.
Project Experience
The IRA provides funding for projects that contribute to decarbonization efforts and support the broader transition to sustainable energy sources. TES systems not only improve overall energy efficiency but also align seamlessly with the IRA’s clean energy initiatives.
St. Lucie West Centennial High School St. Lucie, Florida
Michigan Avenue Elementary St. Cloud, Florida
Manchester Public Schools
Manchester, Connecticut
Bowers Elementary School
To achieve net zero energy, CMTA’s strategy included enhanced roof and wall insulation, efficient MEP systems, optimized air barriers, and appropriate use of glazing. A whole building blower door test was also used to validate the tightness of construction, as well as thermal scanning and imaging.
As the most efficient means of heating and cooling, CMTA designed a geothermal HVAC system for the facility, with the wellfield drilled under the existing ballfield. Coupled with a 371 kW rooftop photovoltaic system, our team right-sized the solar array to generate enough energy to both meet the building’s annual energy demand and fit within the bounds of the roof.
Keeney Elementary School
Keeney Elementary, Manchester Public School’s third renovate-as-new net zero energy school, serves 300 students in grades K-4. To achieve net zero energy, CMTA designed a geothermal HVAC system for the facility, along with a 285 kW rooftop photovoltaic system.
Other notable features include a modern main entrance covered by a transparent photovoltaic panel canopy and an enclosed courtyard with a sundial, providing natural daylighting to interior spaces. The district is targeting savings of up to $2,000,000 in IRA incentives for their implementation of solar and geothermal systems.
SICK Corporate Office Building Phase II
SICK Sensor Intelligence | Bloomington, Minnesota
CMTA is serving as the MEP engineer for phase II of the SICK Sensor Intelligence new corporate campus in Bloomington, Minnesota. The German-based company is a global manufacturer of sensor and safety solutions for industrial applications, and has been part of the Minnesota business community since the 1970s. The new campus will be completed in multiple phases, with phase II slated for completion in 2025.
Phase II includes a 135,000 square-foot new building containing office, training, and laboratory spaces. The building will be connected to the existing building via skyway. Also included in phase II is a new parking ramp to accommodate additional employees and future growth.
It’s estimated that the new SICK corporate campus will bring over 700 jobs to the Bloomington area.
The new facility utilizes a Darcy Solutions geothermal system to provide full heating and cooling service to the building via distributed water-to-air heat pumps. Fresh air is served by dedicated outdoor air units with exhaust air energy recovery, and they utilize free energy from the geothermal system to pre-heat and pre-cool the outside air. The project is targeting savings of up to $5,000,000 through IRA incentives.
Project at a Glance Completion: 2025 estimated
Size: 135,000 SF
Project Type: New Construction
Denton ISD Elementary Schools
Denton Independent School District
Denton, Texas
Denton ISD has a history of planning for the future. Since 1882, voters in the district have approved many bond packages – allowing the district to maintain facilities and encourage growth. In the most recent bond package, the district sought to build new schools, build/renovate several CTE projects, and provide renovation, replacement, safety, and infrastructure projects across the district.
As part of this endeavor, CMTA and Pfluger Architects designed three new elementary schools on the Riney Road, Spiritus Road, and Eppright sites (Reeves Elementary School #26, Hill Elementary School #27, and Martinez Elementary School #28). These two-story facilities will use a 120,000 SF prototype design to expedite construction and maximize taxpayer dollars.
CMTA provided MEP and fire protection engineering for the $50M schools, ensuring high-performance elements were included, such as geothermal HVAC systems. The facilities are expected to reach zero-energy-ready status with these sustainable design strategies. The district is targeting savings of up to $5,160,000 through IRA incentives.
In addition, CMTA provided energy modeling and solar design and incorporated dedicated outdoor air systems to minimize CO2 levels. Daylight modeling was provided to support an improved learning environment, balanced daylighting, and circadian lighting strategies.
Project at a Glance
Completion: 2025 estimated
Size: 135,000 SF
Project Type: New Construction
Margaret Mary Cancer Center Geothermal
Margaret Mary Health | Batesville, Indiana
The Central Plant Geothermal Conversion project is the healthcare system’s first step towards achieving energy efficiency while reducing their carbon footprint. The project involves the removal of a 210 ton air-cooled chiller and installation of 68 geothermal wells at 300 feet deep. The installation of (3) 60 ton 6-pipe Water Furnace Tru Climate Modules not only reduces the usage of boilers for below freezing conditions but also efficiently heats the facility using the heat pump modules even when outside air temperatures drop as low as 25 degrees.
The adoption of the geothermal technology provides a more sustainable energy solution, insulation from energy price volatility, and an opportunity for cost savings.
The Inflation Reduction Act (IRA) is critical to this project, offering federal incentives for clean and renewable energy investments, decarbonization, sustainability investments, energy efficiency, and infrastructure upgrades.
The project is targeting savings of up to $300,000 or 30% of the total cost through IRA incentives, a key piece of the project’s financial strategy that resulted in a 6-year return on investment. This is one of the first targeted healthcare projects to apply for IRA funding and is a prime example of what the Inflation Reduction Act was meant to accomplish.
Project at a Glance Completion: 2023
Size: 45,300 SF
Geothermal Piping: 7.73 Miles
Project Type: Renovation
Post-Project Energy Use Baseline Energy Use
Catawba College Decarbonization Master Plan
Catawba College | Salisbury, North Carolina
In April 2023, Catawba College announced it had achieved carbon neutrality, becoming the first college in the Southeast to reach this milestone. This was accomplished through a combination of reducing greenhouse gas emissions and purchasing carbon emission offsets for those that have not yet been eliminated. The offsets were purchased from a solar farm that generates zero-carbon electricity by capturing and destroying methane, a potent greenhouse gas, from a landfill. However, Catawba’s ultimate goal is to become a zero-carbon campus, eliminating all greenhouse gas emissions and making the purchase of offsets unnecessary.
The journey to a zero-carbon campus requires a roadmap, and Catawba College is partnering with CMTA to create that guide. CMTA is helping Catawba strategize reduction methods for their remaining emissions, which are mostly the result of burning fossil fuels and purchased electricity. These emission reduction strategies include:
– Reducing load through energy efficiency measures
– Installing energy-efficient HVAC equipment
– Electrifying buildings
– Expanding on-campus solar generation
– Electrifying transportation
– Purchasing offsite solar
The roadmap also addresses the financial implications of these sustainability methods. Catawba aims to be a catalyst for their region and beyond by demonstrating how carbon reduction can be achieved in a practical and fiscally responsible manner.
A prime example of this is seen in their collaboration with CMTA to install a geothermal HVAC system for Corriher Linn Library, eliminating the existing natural gas heating system. A life cycle cost analysis revealed that despite higher installation costs, geothermal systems prove to be more cost-effective in the long run, especially when factoring in available utility rebates and federal incentives
Project at a Glance Completed: 2024
Project Size: 275 acres
Lynchburg Hospital Modernization Plan
Central Health | Lynchburg, Virginia
Centra’s modernization plan is a multi-year initiative that will encompass the most significant facility improvements and capital investments in Centra’s 36-year history. This $500M investment is multi-faceted and addresses different needs found within Centra’s community.
After completing a pre-design report, Centra Health hired CMTA to complete MEP/T engineering services for the next phase of the modernization and expansion. The scope of the project includes the emergency department, women’s services, and a medical, surgical inpatient unit. The project also includes added parking close to the front door of the east tower and properly sized central utility plant (CUP) to accommodate the added services.
Centra’s vision for the future is an ongoing process that will involve the community throughout the four years. A key component most important to the hospital and its community, is to make sure all patient services continue normally as construction takes place. The facility is planned to be the first geothermal coupled HVAC system to serve a full acute care inpatient hospital in the state. Both efficient and cost-effective, the geothermal system provides superior energy efficiency and allows Centra to take advantage of federal IRA rebates, estimated at over $10,000,000.
Project at a Glance
Completion: 2027 estimated
Size: 206,000 SF
Project Type: Addition & Renovation
