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Tax Credits for Insulation? What's in it for me.

Updated: Jan 26

As of January 2022, the Residential Renewable Energy Tax Credit, also called the Energy Efficient Home Improvement Tax Credit, provides a federal tax credit for some energy efficiency and insulation improvements. The tax credit program is subject to change, so please check for current information. For information available in 2023, see below:

How much can I get back via the tax credit?

The tax credit is equal to a percentage of the cose of qualifying home energy improvements. The credit for insulation is set to 30% of material costs, with a maximum of $1200 available back.

Credit Amount: The tax credit was equal to a percentage of the cost of qualifying home energy improvements. The credit was generally set at 26% of the cost of the eligible improvements.

Tax Credit Material Requirements: Products used must meet Energy Star requirements to qualify for the tax credit. Energy Star is a energy oriented program run by the U.S. Environmental Protection Agency (EPA) and the U.S. Department of Energy (DOE). All products utilized by PIKA Insulation meet the Energy Star material specification requirements.

Who Qualifies For The Tax Credit? Generally, the principle owner and resident of the home qualifies. New construction and rentals do not qualify. The home must be located in the United States and can include a single family home, mobile home, cooperative apartment, condominium or a manufactured home.

How Do I Claim The Credit? Taxpayers will need to file the appropriate forms at federal income tax filing time. It's recommended a certified tax professional be utilized to help with this process. Receipts and documentations of the materials or contractor agreements are generally required. Make sure to keep these handy to make the process smooth.

Claiming the Credit: To claim the tax credit, taxpayers typically needed to file the appropriate forms with their federal income tax return. Additionally, receipts and documentation for the cost of qualified improvements were usually required.

It's important to be current with tax laws for energy related tax credits. The credits are subject to updates, additions or removals, depending on legislation. Be sure to visit the IRS website, speak with a tax professional, or refer to official government resources to help with this.

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