May 30, 2023
The Inflation Reduction Act of 2022 made headline news last year, but did you know that some of the considerations of the IRA allow for significant savings on insulation replacement and installation, in the form of tax credits? This makes it more affordable to improve the overall energy efficiency of your Charlotte area home, reducing energy costs for years to come. Read on to learn how you can use these energy efficiency tax credits to improve your home.
Tax Credits for Insulation and Air Sealing
The Inflation Reduction Act has breathed new life into the former Nonbusiness Energy Property Tax Credit, now known as the Energy Efficiency Home Improvements Tax Credit. This credit offsets your federal income tax by a full 30% of qualifying energy-saving home improvement costs (some improvements qualify for savings on insulation and materials, and some do not). An array of energy efficiency upgrades can qualify for this tax credit, including (but not limited to)
Claiming your 30% IRA Insulation Tax Credit is a straightforward process. Just include IRS Form 5695 when you file your standard tax return. The credit can be claimed multiple times, and is subject to an annual limit of $1,200.
IRA Rebates Coming Soon
On top of this, the Inflation Reduction Act has paved the way for two innovative rebate programs to facilitate affordable home improvements like insulation and air sealing. These are the HOMES (Home Owner Managing Energy Savings) Rebate Program and the High-Efficiency Electric Home Rebate Program.
While the funding is not immediately available, the Department of Energy expects it to reach individual states by early 2024, and the public should be able to access the rebates later in the year. Although funding in North Carolina is expected to remain unavailable for a while, it's crucial to take immediate action to leverage the existing tax credits. By upgrading your insulation sooner, you can start enjoying reduced energy bills and enhanced indoor comfort more quickly!
Stay Comfortable, Save Energy, with Better Insulation
Insulation saves energy, which is why the federal government is rewarding homeowners who invest in insulating their homes. During the hot summer months, well-insulated homes prevent the cool air generated by your air conditioning system from escaping. Insulation acts as a barrier, halting the heat transfer from the sweltering outside air into the cooler interiors of your home, which reduces the burden on your cooling system.
During the colder months, insulation helps to keep the warmth inside your house by limiting the escape of heat to the outdoors and reducing the amount of energy required to heat your home.
In essence, fiberglass insulation works year-round in Charlotte's climate, ensuring a stable and comfortable indoor temperature while maximizing energy efficiency. It can significantly reduce the energy used for heating and cooling, saving you on your utility costs.
Call Standard Insulating Company and Save on Insulation Costs
The experienced team at Standard Insulating Company is well versed in the ins and outs of IRA tax credits, and ensuring your home insulation upgrades qualify for the maximum tax credit or rebate amount possible. And of course, with every home that Standard Insulating Company insulates, proper installation is our top priority. We aren’t happy until you can feel the difference in your home, and see the difference on your energy bill!