Tax Credits and Incentives
Now more than ever, insulation and air sealing pay off! New federal income tax credits are available through 2032 — providing up to $1,200 each year to lower the cost of energy-efficient home upgrades.
A Home Improvement That Pays Off
Making a few key updates to your home can help to save energy — and thus cut your heating and cooling costs. Averaged across the U.S., weatherization measures such as air sealing and increasing the quality and thickness of attic insulation can reliably reduce energy usage by 12–18%. Deeper building retrofits — like adding insulation to walls, basements, and rim joists and installing higher-efficiency windows — could deliver around 33% energy savings.*
With the latest tax credits and incentives, now is the time to improve the energy efficiency of your home. The Residential Efficiency Tax Credit offers homeowners the opportunity to receive a tax credit of 30% for insulation and air sealing materials installed in their primary residence — up to $1,200 in costs. The credit is available on a yearly basis until December 31, 2032. After installation, use IRS Form 5695 to apply for the credit.
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You may claim the energy efficient home improvement credit for improvements to your main home (where you live most of the time).
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This credit does not apply to a newly built home.
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The credits have no lifetime dollar limits. Homeowners may claim the maximum annual credit every year that eligible improvements are made, through 2032.
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The credits are nonrefundable, so you cannot get back more on the credit than you owe in taxes.
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You may not apply any excess credit to future tax years.
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To learn if you are eligible for these benefits or others in our area, please visit: https://www.energy.gov/save/rebates.
Local Utility Rebates
If you are a customer of BTU (Bryan Texas Utilities), then you may be eligible for a rebate when choosing MVA Insulation as your insulator through the BTU SmartHOME program. The purpose of the program is to help BTU customers strengthen their home’s building envelope, thus improving its ability to avoid heat loss or gain.
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To be eligible:
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You must be an owner of a single- or multi-family permanent dwelling within BTU territory. (Mobile homes, additions, and RVs do not qualify.)
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Projects must have been completed within the current fiscal year, October 1 through September 30 of each year.
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The home must have electric central heat and air conditioning.
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You must have installed one or more of the following approved measures:
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Attic or exterior wall insulation
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ENERGY STAR® rated windows (entire window replacement, not just glass)
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Solar screens
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Click here to learn more about the BTU SmartHOME program.
Tax Credits for Builders
The federal government has enhanced the financial incentives available for builders who construct energy-efficient homes and structures. The tax credit is specifically tied to ENERGY STAR® certification for single-family, manufactured and multi-family homes and either ENERGY STAR or the Zero Energy Ready Home requirements for single-family homes.
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Take Advantage of the Federal Tax Credits
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Builders can receive a credit of $2,500 for single family homes that meet ENERGY STAR® Version 3.1.
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A credit of $5,000 is available for homes that meet the Department of Energy (DOE) Zero Energy Ready Home Program.
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A builder credit of $500/$1,000 is available for constructing certified multi-family units. Incentives increase to $2,500/$5,000 when meeting prevailing wage requirements.
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Producers of manufactured homes are eligible for a $2,500 tax credit for meeting the applicable ENERGY STAR Manufactured New Homes program requirements
The tax credit amount applies until December 31, 2032. See your tax professional for details on how to qualify and claim this credit.
Learn more about federal energy tax credits for homebuilders here.
Tax Deductions for Energy-Efficient Commercial Buildings
Section 179D of the Internal Revenue Code allows deductions for energy-efficient commercial buildings. Taxpayers claiming this tax deduction can receive as much as $5.00 per square foot when making energy efficiency improvements above certain thresholds to commercial and multi-family buildings. The deduction can be allocated to engineers, architects and contractors responsible for creating the technical specifications of a building. Check out ENERGY STAR to learn more about this tax deduction. ​
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If you have questions about insulation tax credits, please contact MVA Insulation today.
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*Source: American Council for an Energy-Efficient Economy, July 2023