Maximize Your Savings with the IRS 25C Tax Credit for Energy-Efficient Insulation

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Did you know that installing energy-efficient insulation in your home could qualify you for a tax credit of up to $1,200 through the IRS 25C Tax Credit? This credit, available for qualified energy-efficient home improvements, can help reduce your overall costs for upgrading your home’s insulation and air sealing systems.

 

How It Works:

If you make energy-efficient improvements to your home between January 1, 2023, and December 31, 2032, you could qualify for a 30% tax credit on eligible expenses, including insulation.

• No specific credit limit for insulation or air sealing systems, other than the annual $1,200 limit for energy-efficient home improvements.

• Insulation materials and systems must meet International Energy Conservation Code (IECC) standards in effect at the start of the calendar year prior to the installation.

• You can claim the credit annually as long as you continue to make eligible improvements.

 

Who Qualifies:

To qualify for the 25C Tax Credit, the home must be:

• Located in the United States

• Your primary residence

• An existing home, not a new build

If you're a homeowner looking to improve your home's energy efficiency, this credit could help cover some of the costs of your insulation upgrades.

 

Additional Benefits:

• No lifetime credit limit: You can claim the credit every year you make eligible improvements, up until 2033.

• Home energy audits: You can also claim up to $150 for a home energy audit, which helps identify areas in your home that can be more energy-efficient.

 

How to Claim the Credit:

When you make eligible improvements, simply file IRS Form 5695 with your tax return. The credit is nonrefundable, meaning it reduces the amount of tax you owe, but cannot result in a refund if it exceeds your tax liability.

If you’re ready to enhance your home's energy efficiency and take advantage of the IRS 25C Tax Credit, contact us today!