Save More Money with Federal Energy Tax Credits

Now more than ever, it pays to insulate! New federal income tax credits are available through 2032—providing up to $1,200 each year to lower the cost of energy-efficient home upgrades.

A Home Improvement That Pays Off

Making a few key updates to your home can help to save energy—and thus cut your lowing and cooling costs. Averaged across the U.S., weatherization measures such as air sealing and increasing the quality and thickness of attic insulation can reliably reduce energy usage by 12–18%. Deeper building retrofits—like adding insulation to walls, basements, and rim joists and installing higher-efficiency windows—could deliver around 33% energy savings.*

With the latest tax credits and incentives, now is the time to improve the energy efficiency of your home. Check out these unique ways to cover some of your project costs through the tax credits and rebates available to you.

Residential Efficiency Tax Credit

The Residential Efficiency Tax Credit offers homeowners the opportunity to receive a tax credit of 30% for insulation and air sealing materials installed in their primary residence—up to $1,200 in costs. The credit is available on a yearly basis until December 31, 2032. After installation, use IRS Form 5695 to apply for the credit.

Learn more about the federal insulation tax credit here. LINK: https://www.energystar.gov/about/federal_tax_credits/insulation

Rebates through the HOMES Act

Rebates are available for homeowners who make performance-based whole home efficiency upgrades. The rebate savings include:

  • For homes achieving 20-35% modeled energy savings – rebate of the lesser of $2,000 or 50% project cost.
  • For homes achieving at least 35% modeled energy savings – rebate of the lesser of $4,000 or 50% project cost.
  • For homes achieving at least 15% measured energy savings – rebate payment rate per kWh saved, equal to $2,000 for a 20% reduction, or 50% project cost.

Department of Energy (DOE) Electrification Program

The DOE Electrification Program offers rebates for insulation, air sealing and ventilation upgrades for eligible homeowners. Specifications include:

  • 50% of the cost of insulation up to $1,600 for households with annual incomes of 80-150% of area median income.
  • 100% of the cost of insulation up to $1,600 for households with annual incomes less than 80% of area median income.

Learn if you qualify for these or any other rebates in your area at www.dsireusa.org.

Whether you want to add insulation to your existing home or you’re planning a home remodel project, SuperSeal is here to serve as an expert for your project. Please complete this form to request a free in-home estimate.

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Do you have questions about insulation? See our Insulation FAQs section.

*Source: American Council for an Energy-Efficient Economy, July 2023