The Responsible Investor

Written by Derek Van Calligan on 03 October 2022. Posted in The Responsible Investor

Inflation Reduction Act and the Tax Incentives for Consumers

The Biden administration recently passed one of its more significant pieces of legislation—the Inflation Reduction Act of 2022. However, many debate whether a bill that includes almost $500 billion in new spending will do much for inflation in the short term. Proponents of the bill claim that the increased taxes derived from corporations and IRS enforcement will reduce the budget deficit.

The purpose of this post is not to get into a political discussion about whether this new bill will reduce inflation and the budget deficit. There are plenty of articles written about that already. Instead, we will take a closer look at the $386 billion earmarked for energy and climate and how individual taxpayers could take advantage of some of the new tax incentives.[1]

Energy Efficient Home Improvement Credit

The Energy Efficient Home Improvement Credit is similar to the old Nonbusiness Energy Property Credit that expired in 2021. Starting in 2023, homeowners can receive a tax credit of 30% for energy-efficient home improvements.[2] Eligible improvements include energy-efficient doors and windows, air conditioners, circulating fans, and more.[3] The lifetime limit for this tax credit increased from $500 to $1,200, meaning taxpayers can get more bang for their buck.

The Responsible Investor

Written by Derek Van Calligan on 01 June 2022. Posted in The Responsible Investor

Climate Action – Investing Sustainably

Many scientists believe that the earth’s atmosphere is changing rapidly. According to the National Oceanic and Atmospheric Administration (NOAA), the earth’s temperature has risen by an average of 0.14°F every decade since 1880. The rate of warming over the past four decades is more than twice that at 0.32°F.¹

This temperature increase profoundly affects weather patterns and strains on our natural resource. Rising global temperatures significantly impact the world’s oceans. Scientists estimate that the global sea level could rise another one to eight feet by 2100 due to melting arctic ice sheets.² In the United States, the increased sea level will put millions of people and billions of dollars of real estate at risk from rising tides causing erosion, flooding, and environmental changes to wildlife habitats and farmland.

The Responsible Investor

Written by Derek Van Calligan on 17 February 2022. Posted in The Responsible Investor

Introduction to Ethos ESG

As an investor, have you ever wondered if there was a way to align your investment portfolio with your values? Have you wished to see whether the companies you invest in are embroiled in controversies and avoid them? Or have you questioned whether the companies represented in your portfolio are doing something to make the world a better place?

Historically, investors utilizing traditional mutual funds and exchange-traded funds could not answer any of these questions. With increased interest in sustainable and responsible investment (SRI) strategies over the past decade, more and more investors have been looking to their advisors for answers. It’s been challenging for advisors to answer these questions without the help of a third-party research provider digging deeper into portfolios to find the environmental, social, and governance (ESG) factors of each underlying company.

The Responsible Investor

Written by Derek Van Calligan on 24 September 2021. Posted in The Responsible Investor

Infrastructure Bill – What’s in it and who’s paying for it?

On August 10^th, the U.S. Senate passed an infrastructure bill that included over $1 trillion in infrastructure spending. Both parties have been trying to come to a resolution on an infrastructure package since the Trump administration. However, it was only until recently that both Republicans and Democrats could agree. This blog post aims to give an overview of the type of spending in this bill, and how it may advance clean and sustainable infrastructure.

While the $1 trillion infrastructure plan that passed the Senate seems relatively high, it is approximately 50% less than the original $2.3 trillion infrastructure plan that the Biden administration proposed in the spring. Of the roughly $1.2 trillion in infrastructure spending, about half of that spending ($550 billion) is new dollars above the projected federal spending on infrastructure projects.¹

The Responsible Investor

Written by Derek Van Calligan on 28 May 2021. Posted in The Responsible Investor

Impact Investing for Individual Investors

Many investors are becoming more conscious of where they allocate their money and want to ensure that they are investing their dollars in a way that won’t be a detriment to society.¹ Some common ways investors can align their portfolio with their values is by investing in Socially Responsible Investments (SRI) and Environmental, Social, and Governance (ESG) mutual funds and exchange-traded funds. However, one of the lesser-known types of sustainable and responsible investing is known as impact investing. Impact investing has the potential for direct social influence because it is made with the intention of generating a positive and measurable social and environmental impact along with a financial return.²

There are unique differences between each of these three types of investing styles. SRI is a broad term that covers an investment strategy that actively includes or excludes investments based on ethical guidelines. A good example would be a fossil-fuel free portfolio that excludes companies that produce any amount of fossil fuels. ESG investing is a strategy that looks at the Environmental, Social, and Governance characteristics of a company as part of the investment analysis process. This type of strategy may look to invest in companies that have higher ESG scores than their peers or look to exclude companies based on lower ESG scores.

The Responsible Investor

Inflation Reduction Act and the Tax Incentives for Consumers

Energy Efficient Home Improvement Credit

The Responsible Investor

Climate Action – Investing Sustainably

The Responsible Investor

Introduction to Ethos ESG

The Responsible Investor

Infrastructure Bill – What’s in it and who’s paying for it?

The Responsible Investor

Impact Investing for Individual Investors

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