This fall and winter provide a golden opportunity to not only enhance your home’s comfort and energy efficiency but also enjoy a substantial tax reduction! By investing in insulation upgrades for your home before the end of 2023, you can reduce this year’s tax liability by $1,200 and see those savings in 2024, instead of having to wait until you do your taxes in 2025. Let’s delve into how this federal tax credit for insulation works, and the myriad of benefits that come with attic and basement insulation.
Insulation Incentives: A Warm Welcome to Tax Savings
The 25C insulation tax credit was extended thanks to the passing of the Inflation Reduction Act, which among many other things, recognizes the environmental and energy-saving benefits of proper insulation. This financial incentive is designed to encourage homeowners to adopt more energy-efficient practices, contributing to a greener and more sustainable future for all. But insulation is more than just a reason to save on your energy costs and your taxes in April — it's also a way to make your home more comfortable all year round.
How to Claim the Insulation Tax Credit
Choosing a contractor that specializes in whole-home insulation and air sealing solutions ensures that every nook and cranny of your home is optimally insulated. Our team of experts is dedicated to providing comprehensive solutions that enhance your home’s energy efficiency, comfort, and air quality, while also helping you navigate through the process of claiming your $1,200 tax reduction — which is as follows:
Schedule an insulation assessment with Standard Insulating Co.
Once you have reviewed and approved our proposal, we will get to work installing your new insulation and ensuring your insulation work is completed by the end of 2023.
Keep all receipts.
When you file your taxes in April of 2024, you or your tax professional should file form 5695.
Deduct 30% of your insulation material costs, up to $1,200 from what you owe in federal taxes.
Continue to enjoy your comfortable, energy efficient home for years to come!
The Comfort of Quality Insulation Installation
Investing in updated insulation creates a barrier that shields your indoor living space from the external environment, ensuring that the warmth stays in during winter and out during summer. This thermal barrier not only makes your home more comfortable year-round but also reduces the workload on your heating and cooling systems, prolonging their lifespan. When combined with professional air sealing, and in some cases a radiant barrier (which you can read more about here), these upgrades provide benefits you’ll be able to feel in your home, and in your wallet.
How Insulation Reduces Energy Costs
By preventing the escape of heated or cooled air from your home, insulation ensures that your HVAC system doesn’t have to work as hard or as often to maintain a comfortable indoor temperature. This efficiency translates directly into reduced energy consumption and, consequently, lower utility bills. Over time, the savings accrued from diminished energy costs can be substantial, offsetting the initial investment in insulation.
Battling Drafts and Enhancing Air Quality
Drafts can be a major concern, especially during the chilly winters in Charlotte. By upgrading your insulation, you effectively minimize the infiltration of cold air into your living spaces, eliminating uncomfortable drafts.
And because insulation (and air sealing) seals off gaps and prevents outdoor allergens, pollutants, and moisture from entering your home, insulation helps maintain a cleaner and healthier indoor environment.
Where is Insulation Most Effective? The Attic and Basement!
Without adequate attic insulation, a significant portion of your heating can escape through the roof. By insulating your attic, you keep the heat inside for longer, maintaining a cozy and warm environment during the colder months. Additionally, attic insulation prevents the scorching summer heat from infiltrating your home, keeping it cool and comfortable.
Basements and crawl spaces can be notorious for dampness and cold. Insulating your basement not only prevents the cold ground from leaching heat from your home but also mitigates the risk of moisture-related issues, such as mold and mildew. A well-insulated basement can serve as a comfortable living or storage space, maximizing the utility of every square foot of your home.
Standard Insulating Company Helps with Insulation Rebates, Financing, and More
Charlotte homeowners can seize this opportunity to make a smart investment in their home and enjoy the multifaceted benefits that come with quality insulation. And when you work with Standard Insulating Company for your home improvement project, our team can also work with you to take advantage of not only the 25C tax credit, available rebates from Duke Energy, and financing options so you can take advantage of these energy savings right away.