In today’s world, environmental concerns and rising energy costs are at the forefront of our minds. In this scenario, upgrading to an energy-efficient home is not a bad idea. It is beneficial for our home and pocket. One way to encourage homeowners to make energy-efficient home improvements is through tax credits. Today, in our blog post, we will discuss how you can claim tax credits and their benefits.
Let’s dive in!
Claim the EEHIC Tax Credits
These credits are managed by the U.S. Internal Revenue Service (IRS). You can claim them with your federal income taxes for the year the upgrades are made. The Energy Efficient Home Improvement program started on January 1, 2023, and will continue till December 31, 2032. To claim the tax, you have to meet the Energy Star 3.2 requirements. You can claim 30% of the product cost and get up to $1200 credited.
Products Eligible For Tax Credit
Bulk insulation products are included in the EEHIC program. It includes:
- Rolls
- Blow-in Fibers
- Rigid Boards
- Expanding spray, etc.
Also, the air seal products qualify, including:
- Weatherstripping
- Spray Foam insulation
- House wrap, etc.
How to Claim Energy Efficiency Home Improvement Credit
To claim the energy efficiency home improvement credit, consider the following points:
- You can claim your credits for the home where you live.
- Your home should be in the U.S.
- The credits are for the home in which you are living. It does not apply to newly constructed homes.
- If you own multiple homes, you cannot claim tax credit for them.
The tax credits do not come with a cap on the total amount you can receive over your lifetime. Homeowners can claim the full annual credit for each eligible improvement they undertake every year until 2032. It’s important to note that these credits are nonrefundable. It means you cannot receive a refund that exceeds the amount you owe in taxes. Additionally, any excess credit cannot be carried forward to offset taxes in the future.
How to Benefit from Energy Efficiency Tax Credits
Understand Eligibility: Conduct thorough research and understand the eligibility requirements before starting the energy-efficient home improvement project. All upgrades do not qualify. Moreover, criteria can change from year to year. It is a wise idea to consult the IRS website to stay up to date.
Keep Documentation: Maintain proper documentation of home improvements to claim tax credits. It includes receipts, invoices, and manufacturer’s certification as proof.
File Correctly: When filing your taxes, complete the appropriate tax forms and attach the necessary documentation to claim your energy efficiency tax credits.
Consult a Tax Professional: Tax laws and regulations can be complex and may change over time. To ensure you receive the maximum benefit from energy efficiency tax credits, consult a tax professional specializing in energy-related tax incentives.
Make Your Home Energy Efficient With Air Seal
Air Seal offers the best spray foam insulation services for your home and office. We will help you avail of the energy efficiency tax credit by maximizing your eligibility. Our certified experts will seal all the gaps and cracks to insulate your home. This way, you can reduce your energy bills to a great extent. Moreover, foam insulation offers noise-cancelling properties so you can relax and enjoy your time at home.
You can rely on us for advice on selecting the right insulation or foam insulation services for your home. Our skills team has the right tools, equipment, and knowledge to provide customized services. We provide cost-effective and durable spray foam insulation.
Contact us today and learn more about our services.
