RESIDENTIAL ENERGY EFFICIENCY TAX CREDIT (25C)

If you make your home more energy-efficient, you may qualify for federal energy efficiency tax credits, which have been extended through December 31, 2032. For insulation added before December 31, 2022, you can receive a tax credit equal to 10% of the material cost, up to $500. Starting January 1, 2023, the credit increases to 30% of the insulation and air sealing material costs, up to $1,200 annually. These credits are available for existing homes (not new construction or rental properties) and only for primary residences. Many types of insulation qualify for these federal credits.

While the tax credit covers the cost of insulation materials, it does not cover installation costs. To claim the credit, you must have a receipt for the insulation cost and file Form 5695 with your tax return.

STATE & LOCAL TAX CREDITS

In addition to federal credits, many states and local utility companies offer rebates for homeowners who improve their home’s energy efficiency. These rebates can often be combined with federal tax credits. To find out if rebates are available for insulation upgrades, check with your utility company’s website or customer service.

Experts at Insulation Inc. may also have information on current rebates available in your area. Be aware that these rebates may have expiration dates and are subject to change.

ENERGY STAR CERTIFIED INSULATION

You may be familiar with ENERGY STAR rebates for products such as refrigerators, washers, HVAC systems, and water heaters. The ENERGY STAR label signifies that a product meets energy efficiency standards set by the EPA. While there are no specific rebates for ENERGY STAR-certified insulation, many insulation products do carry this certification. Check with an Insulation Inc. installer to see if your chosen insulation is ENERGY STAR certified.