You can save up to $1,200 by claiming the insulation tax credit when you make your home more comfortable and affordable to heat and cool with upgraded insulation and air sealing. This tax credit is a money-saving incentive that many homeowners are unaware of, and even fewer know that fall is one of the best times to schedule your home improvement work if you want to claim your tax credit quickly!
What Is the Insulation Tax Credit?
The insulation tax credit is a federal tax credit, officially called the Energy Efficient Home Improvement Credit. This incentive allows you to take a tax credit equal to 30% of the cost of eligible insulation and air sealing expenses, with a maximum of $1,200 per year.
A tax credit reduces the amount of taxes you owe. You claim your tax credit—and your savings—when you go to file your tax return for the year in which you completed your insulation and air sealing project (this is important for reasons we’ll explain below, but the job has to be finished). As long as you owe federal taxes, you can use the insulation tax credit to reduce or even eliminate your federal taxes due!
What’s the Benefit to Upgrading My Home’s Insulation by the End of the Year?
Because of the way the insulation tax credit works, you only realize your savings at the time when you complete your taxes. Most homeowners file their taxes by April 15 for the previous year. That means that for any insulation and air sealing work you completed in 2024, you would file your taxes in early 2025.
There’s a good reason why you benefit more when you upgrade your home’s insulation and air sealing in the fall (aside from the improved indoor comfort and lower heating bills you’ll see all winter long!). If you want to minimize the amount of time between when the insulation upgrades are made and when you receive your savings in the form of a tax credit, then you want your project to be completed towards the end of the year, so that a few months later you can take your credit.
If your insulation upgrade is completed in early 2025, then you’ll likely have to wait until early 2026 to claim your credit—a year or more! You probably don’t want to wait that long, and we don’t want you to, either!
Schedule an Energy Assessment Today to Ensure Your Insulation Upgrade Is Finished in 2024!
So, if you’re thinking about upgrading your Chicago home’s insulation and air sealing, and want to claim your tax credit, reach out to us today! The best way to guarantee that you’ll have your eligible home improvement work finished by the end of the year is to schedule an energy assessment with our team.
With the results of your assessment, the ARC Insulation team will have a better understanding of what insulation and air sealing work will make the biggest difference to your home comfort and monthly utility bills. Plus, we’ll walk you through available incentives like the insulation tax credit so you can be sure you qualify!
