Unlock Savings With The Insulation Tax Credit
The insulation tax credit, also known as the Energy Efficient Home Improvement Credit, offers eligible homeowners a fantastic opportunity to receive a federal tax credit of up to $1,200 annually for essential upgrades like insulation and air sealing. At Argyle Bros Insulation, we’re committed to helping you take full advantage of this tax incentive, ensuring your upgrades qualify for the insulation tax credit.
What Is a Tax Credit?
Homeowners often wonder, "Is home insulation tax deductible?" While tax credits and tax deductions may sound similar, they serve different purposes. A tax credit reduces the amount of taxes you owe, while a tax deduction lowers your total taxable income. Its important to understand, the insulation tax credit applies only to federal taxes, not state taxes.
How Does the 25c Insulation Tax Credit Work?
The 25C tax credit (named for the relevant section of the IRS tax code) allows you to claim a federal tax credit equaling 30% of the total cost for a variety of energy-efficient home upgrades, including qualifying insulation and air sealing expenses. The annual maximum credit for this category of upgrades is $1,200.
Eligible upgrades include:
Attic insulation
Wall insulation
Basement insulation
Crawl space insulation
Many types of insulation materials qualify, as long as specific insulation levels are met. Our team at Argyle Bros Insulation will work closely with you to ensure your insulation project is eligible for this credit.
Benefits of the 25c Tax Credit for Insulation and Air Sealing
Benefits of enhancing your home’s energy efficiency, includes:
Lower energy bills
Improved home comfort
A more environmentally-friendly house
The 25C tax credit offers unique advantages:
Available to anyone with federal tax liability: If you pay federal taxes, you can claim your insulation tax credit! This incentive is available to any homeowner, unlike many rebate programs.
Can Be Combined With Other Incentives and Insulation Rebates: If you qualify for other incentives, the 25C tax credit is an excellent way to save even more, making your home upgrade even more affordable.
$150 Credit for Energy Audits: If your eligible tax credit for insulation and air sealing doesn’t reach the $1,200 annual maximum, you can also claim a 30% credit (up to $150) for any related energy audit costs.
Calculated Separately From Heat Pump Upgrades: The 25C homeowner tax credit covers various energy-efficiency upgrades, with insulation and air sealing in a separate category from heat pump systems. This means you can potentially claim both a $1,200 insulation tax credit and a $2,000 heat pump tax credit in the same year, totaling up to $3,200 in tax credit savings!
How to Claim Your Tax Credit
Claiming your tax credit for insulation and air sealing upgrades is a straightforward process:
Verify Eligibility: Argyle Bros Insulation will confirm that your insulation work meets the criteria for tax credit eligibility.
Keep Your Receipts: We’ll provide an invoice detailing the tax-credit-eligible portions of your work. You’ll need this when you file your taxes.
File IRS Form 5695 or Consult a Tax Professional: When it’s time to file your taxes, remember to claim your tax credit!
*At Argyle Bros Insulation, we have a tax professional prepare our taxes, and recommend that you do, too. Our goal is to be as helpful as possible in ensuring you get your tax credit, but we’re experts in insulation, not taxes!
Tax Credits For Insulation
Contact us to learn how you can save up to $1,200 in tax credits when you insulate your home!
