If you have been looking for the right time to upgrade to the comfort and efficiency of professionally installed insulation, it is now more affordable thanks to the 25C tax credit outlined in the Inflation Reduction Act of 2022. Let’s take a closer look at how this tax credit will actually shake out in saving you on your installation costs, and how you’ll benefit from your new insulation.
25C Tax Credit Offers up to $1,200 in Savings
The energy efficiency tax credit, also known as the Nonbusiness Energy Property Tax Credit, was introduced in the United States as part of the Energy Policy Act of 2005. It has undergone many extensions and iterations, most recently thanks to the Inflation Reduction Act of 2022. The 25C tax credit allows for a credit totaling 30% of any insulation and air sealing material costs (installation labor costs are not included). This 30% credit has a maximum benefit of $1,200 and can be subtracted from what you owe in federal income taxes for the year the work was completed.
So, for every $1,000 you spend on insulation materials for your insulation upgrade, you can subtract $300 from what you owe in taxes come April, up to $1,200.
Better Insulation Means Lower Energy Costs
Not only can you save on the cost of making your home more comfortable with better insulation, it will also save you in future energy costs. Insulation saves you money by reducing energy consumption and maintaining a comfortable indoor temperature. By effectively insulating and air sealing your home, you minimize heat transfer between the indoors and outdoors, preventing cool air from escaping during summer and warm air from escaping during winter. This results in less strain on your HVAC system, reduced energy bills, and an overall improvement in home comfort and efficiency.
Call Insulation Man for Insulation Installation in Binghamton, NY
Insulation Man is the trusted local insulation contractor that is up to speed on how to qualify for the 25C tax credit. Since 1975, our skilled team has offered a comprehensive range of services tailored to improve your home’s energy efficiency. As a family-owned and operated company, Insulation Man is committed to providing exceptional customer service, ensuring your satisfaction every step of the way. Trust our expertise to maximize your tax savings and enhance your home’s comfort and performance.
