For Homeowners:
Energy Efficient Home Improvement Tax Credit
The insulation tax credit, also called the Energy Efficient Home Improvement Credit, allows eligible homeowners to receive a federal tax credit of up to $1,200 annually for upgrades like insulation and air sealing.
One of the benefits of working with Cameron Home Insulation is that we can help ensure that our work qualifies you to receive this incentive. It all starts with a free home energy assessment.
Call 443-290-5182 to see how much you could save with the insulation tax credit and other available incentives and rebates!
What is a tax credit?
Homeowners sometimes ask us if home insulation is “tax deductible.” While, tax credits and tax deductions are similar tax breaks, they’re not the same.
A tax credit reduces the amount of taxes you owe, while a tax deduction reduces your total taxable income. The insulation tax credit only applies to federal taxes, not state taxes.
How does the Section 25C Insulation Tax Credit work?
The 25C tax credit (25C refers to the relevant section of the IRS tax code) allows you to take a federal tax credit equaling 30% of the total cost for a variety of energy efficiency home upgrades, including qualifying insulation and air sealing expenses. There is an annual maximum credit of $1,200 for the category of upgrades that includes insulation.
What types of home upgrades qualifies for tax credit?
Attic insulation, wall insulation, basement insulation, and crawl space insulation all qualify for the credit, as do many different types of insulation materials, as long as certain insulation levels are met.
While the credit does not include the amounts paid for the installation of materials, Cameron Home Insulation will work with you to ensure that your insulation work is eligible.
What are the benefits of the 25C Tax Credit for insulation and air sealing?
Taking advantage of the insulation tax credit means that you’ll see all of the benefits of improving the energy efficiency of your home: lower energy bills, improved home comfort, and a house that’s better for the environment.
But there are additional benefits unique to this specific tax credit:
Available to Anyone With Federal Tax Liability
As a homeowner, if you pay federal taxes, you can claim your credit for insulation services! This is a national incentive available to any homeowner, unlike many rebate programs.
Can Be Combined With Other Incentives and Insulation Rebates
But if you do qualify for other incentives, the 25C tax credit is a great opportunity for additional savings, making upgrading your home even more affordable.
Calculated Separately From Heat Pump Upgrades
The 25C homeowner tax credit covers a number of different energy-efficiency upgrades for your home, and insulation and air sealing upgrades are in a separate category from heat pump HVAC systems and heat pump water heaters. This means that you can take both a $1,200 insulation credit for insulation, as well as a $2,000 credit for a heat pump installation/replacement within the same year, for as much as $3,200 in total tax credit savings!
How can a taxpayer claim their tax credit?
Luckily, claiming your tax credit for insulation and air sealing upgrades is straightforward.
Verify Eligibility
As part of our FREE Home Energy Assessment, Cameron Home Insulation will assess your eligibility for tax credit.
Should you work with us to insulate and/or air seal your home, we verify with you that the insulation work we performed meets the criteria for eligibility.
Keep Your Receipts
We will also provide you with an invoice breaking down the tax-credit-eligible portion of your work. You’ll need this for filing your taxes for the year in which work was performed.
File IRS Form 5695
Make sure you remember your credit for the tax year! Whether you file your taxes yourself, or consult a tax professional, make sure to include Form 5695.
We do not do this step for you. At Cameron Home Insulation, we have a tax professional prepare our taxes, and recommend that you do, too. Our goal is to be as helpful as possible in ensuring you get your tax credit, but we’re experts in insulation—not taxes!
Ready to save up to $1,200 in tax credits next season?
Insulate your home with Cameron Home Insulation. Call 443-290-5182 or contact us today to get started.
Form 5695
Use Form 5695 to figure and take your residential energy credits.
The residential energy credits are:
- The residential clean energy credit, and
- The energy efficient home improvement credit.
Retrofit Insulation
Attic Insulation
Crawlspace Insulation
Air Sealing
Got a general question about home insulation? Don't know where to start? We've got answers.
Cameron Home Insulation insulates and air seals homes in DC, MD, and VA.
If you live in Washington, DC, Maryland, or Virginia, Cameron Home Insulation should be your first choice when it comes to selecting the best insulation service for your home. We are an independently owned and operated, fully licensed, bonded and insured contractor that has been in the full-service home insulation business for four generations. We are expertly trained in the proper installation and safe removal of all types of insulation.
Call 443-290-5182 for more information on how you can benefit from a FREE Home Energy Assessment.
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Cameron Home Insulation's main mission is to help local families experience more comfort and energy savings in their homes. For four generations, we've proudly served the Washington, DC, Maryland, and Virginia tri-state area. Our expertise in insulation and building science allows us to tailor the right solutions that bring the most value to our customers.
