The Insulation Tax Credit | Eric Kjelshus Energy | Greenwood
The insulation tax credit, also called the Energy Efficient Home Improvement Credit, allows eligible homeowners to receive a federal tax credit of up to $1,200 annually for upgrades like insulation and air sealing.
Eric Kjelshus Energy can help ensure that your work qualifies for this insulation tax credit. Reach out today to see how much you could save with the insulation tax credit and other available incentives and rebates.
What Is a Tax Credit?
Homeowners sometimes ask us if home insulation is tax deductible. Tax credits and tax deductions are similar tax breaks, but they’re not the same. A tax credit reduces the amount of taxes you owe, while a tax deduction reduces your total taxable income. The insulation tax credit only applies to federal taxes, not state taxes.
How Does the 25C Insulation Tax Credit Work?
The 25C tax credit (25C refers to the relevant section of the IRS tax code) allows you to take a federal tax credit equaling 30% of the total cost for a variety of energy efficiency home upgrades, including qualifying insulation and air sealing expenses. There is an annual maximum credit of $1,200 for the category of upgrades that includes insulation.
Attic insulation, wall insulation, basement insulation, and crawl space insulation all qualify for the credit, as do many different types of insulation materials, as long as certain insulation levels are met. Eric Kjelshus Energy will work with you to ensure that your insulation work is eligible.
