Insulation Tax Credits for Retrofit Homes

On December 22, 2022, The Fact Sheet 2022-40 was released in reference to the reinstatement and enhancement of the 25C tax credit for residential energy efficiency upgrades, the 179D tax deduction for energy efficiency improvements in commercial buildings, and the 45L tax credit for new energy efficient homes. 

For homeowners, this means that the 25C Residential Energy Efficiency Tax Credit for insulation in retrofit applications has been reinstated up to $500 through December 31, 2022. As of January 1, 2023 through 2032 the 25C credit increases to a maximum of $1,200. 

For more details on how this program works and what kind of credits you can get for improving the insulation and energy efficiency of your home, consult the IRS website here: https://www.irs.gov/credits-deductions/frequently-asked-questions-about-energy-efficient-home-improvements-and-residential-clean-energy-property-credits 

The IRS.gov link above can provide information about, Qualifying Expenditures and Credit Amount, Energy Efficiency Requirements, Qualifying Residence, Labor Costs, Timing of Credits, other General Questions and Examples. 

If you have additional questions about how this tax credit works, we recommend contacting a Certified Tax Professional or the IRS directly.