Did you know that home insulation qualifies for up to $1,200 in federal tax credits? If you don’t want to miss out on those savings in 2024, installing new insulation before the end of the year is a smart choice.
Home Energy Medics can help you take advantage of tax credits and incentives for insulation in Northern Virginia, DC, and Maryland. We’re the go-to local insulation company for homeowners who want to make impactful improvements that save money!
How the Insulation Tax Credit Works
The insulation tax credit (formally known as the Energy Efficient Home Improvement Credit) has been around for years but was revamped in 2022 as part of the Inflation Reduction Act. The new and improved insulation tax credit makes fundamental home upgrades more affordable and can help you achieve more home comfort and lower energy bills year-round.
Here’s how it works.
Tax credits are a dollar-for-dollar reduction of your tax liability, meaning they reduce the amount of taxes you owe. Since the insulation tax credit comes from the federal government, it is applied to your federal taxes owed, not state, and the reduction is only seen once you file your annual taxes. It’s worth 30% of your qualifying expenses for certain energy efficiency home improvements, including insulation and air sealing.
In order to be eligible to receive the tax credit, you must have a taxable income and make improvements on your primary residence that’s located in the United States. Only existing homes are eligible, not new construction.
What’s Eligible for the Tax Credit?
The insulation tax credit is part of a wider credit that covers a wide variety of energy-saving home improvements. You can claim a total of $3,200 per year when you make qualifying upgrades to your home.
Energy Efficient Home Improvements
You can claim a total of $1,200 (with limits that vary by service) for certain energy efficiency home improvements, including:
Electrical panels and components needed for HVAC upgrades
The credit can be claimed year after year from now through 2032, so you can make continuous improvements and continue to save. Maybe you want to upgrade your attic insulation this year and your basement insulation next year—Home Energy Medics can help you come up with an improvement plan that maximizes your savings.
Heat Pumps
You can claim an additional $2,000 credit for heat pump HVAC systems and heat pump water heaters.
Ducted heat pumps
Ductless mini split heat pumps
Heat pump water heaters
Why You Should Make Improvements Now
To claim the insulation tax credit on your 2024 taxes, you must complete your installation before the end of the year, which is coming up fast. Waiting to make improvements means waiting to receive your incentive! And that’s not all you're missing out on. Insulation saves energy, which saves you money on your heating and AC bills. The longer you wait to make upgrades, the more money you're wasting on energy bills every month.
Upgrading your home now with insulation and air sealing has many benefits that you don’t want to miss out on.
Improved energy efficiency
Less wear on your HVAC system
Increased comfort levels (no more hot second floor or temperature fluctuations!)
Improved indoor air quality
Home Energy Medics: Your Local Home Efficiency Experts
Ready to upgrade your home’s insulation? Call the pros at Home Energy Medics. We are not just an insulation installer but a true energy efficiency expert that uses building science to make long-lasting improvements to your home’s comfort and energy efficiency. We recommend starting every insulation project with a complete home energy audit to get a full picture of how your home is operating. That information is vital because it will help you make the most effective improvements to your home and avoid making changes that have negative consequences. A lot of companies offer free energy audits, but as with most things in life, you get what you pay for. A fast, free audit does not provide enough information. Our comprehensive audits give you a complete picture of your entire home and what can be done to improve it. Are you ready to see what Home Energy Medics can do for your home?