Federal Tax Credit

Federal Tax Credit Program was reinstated for 2023: Qualified Energy Efficiency Improvements can receive a 10% tax credit worth up to $500 for homeowners for qualified energy-efficiency upgrades such as building insulation.

The Inflation Reduction Act of 2023 reinstated the 25C tax credit for insulation and air sealing through 2023. Until Dec. 31, homeowners may be eligible for a federal tax credit up to $500 or 10% of their purchase of insulation to their main home, whichever is lower.

The legislation also increases the 25C tax credit and makes it valid from Jan. 1, 2023 through Dec. 31, 2032. Taxpaying homeowners can receive a federal tax credit up to 30% of their purchase, up to $1,200. A tax credit reduces tax owed, dollar for dollar.