Insulation Tax Credit
In August 2022, The Inflation Reduction Act was signed into law, providing $500 billion (!) in new spending and tax breaks aimed at increasing clean energy, decreasing healthcare costs, and raising tax revenues. This law had many far reaching effects, including a tax credit that allows homeowners who upgrade their attic insulation to receive a tax credit equal to 30% of their project cost or $1,200, whichever is less.
You can claim
30%
of project cost
$1,200
maximum amount credited
...on your 2023 tax return
This tax credit is effective for insulation products purchased and installed after January 1, 2023, and includes all of the most common insulation products and types (batt, blow-in, rigid boards, spray foam, cellulose, and fiberglass).
The tax credit aims to incentivize improving energy efficiency, so homeowners can receive the credit when improving the energy efficiency of insulation, windows, doors, and skylights as well as furnaces, boilers, and central air conditioning systems.
To be clear, we are not qualified or knowledgeable enough to provide tax advice, and you should consult with a Certified Public Accountant regarding the specifics of the Inflation Reduction Act before assuming the impact it will have on your taxes.
Between the increasing cost of energy, Critter Stop’s aggressive pricing structure, and the tax credit providing savings up to 30%, the ROI calculation for getting an insulation top-off service becomes a no-brainer for all but the newest homeowners. Give Critter Stop a call today and we can provide a free estimate!
The tax credit aims to incentivize improving energy efficiency, so homeowners can receive the credit when improving the energy efficiency of insulation, windows, doors, and skylights as well as furnaces, boilers, and central air conditioning systems.
To be clear, we are not qualified or knowledgeable enough to provide tax advice, and you should consult with a Certified Public Accountant regarding the specifics of the Inflation Reduction Act before assuming the impact it will have on your taxes.
Between the increasing cost of energy, Critter Stop’s aggressive pricing structure, and the tax credit providing savings up to 30%, the ROI calculation for getting an insulation top-off service becomes a no-brainer for all but the newest homeowners. Give Critter Stop a call today and we can provide a free estimate!
Insulation Estimated ROI Calculation
(Data as of 7/23)
Average DFW Home Sq Footage
1,862
Estimated Avg. Annual Consumption (kWh)
18,012
$ / kWh
$0.13
U.S. DoE Estimated Savings (%)
20%
U.S. DoE Estimated Savings ($)
$468
Avg. Insulation Top Off Price $ / Sq Ft (6")
$1.05**
Top Off Price For Avg DFW Home Sq Ft
$1,955
(-) 2023 Tax Savings (30% of Cost)
-$587
Effective Cost for 1,862 Sq Ft Top Off
$1,369
ROI (Including Tax Credit)
34%
Disclaimer: This is not a guarantee in regards to energy reduction or savings. This calculation is an illustrative calculation of possible savings. Savings will vary based on countless factors, including the size and age of the structure, age and type of insulation in the walls, number and type of windows, type of foundation, amount of insulation currently in attic, building materials of the structure (brick vs siding), current energy usage, current HVAC system, etc.
Sources: U.S. Department of Energy, ENERGY STAR, Dallas Business Journal, and Energy Sage.
Our full calculation and exact sources can be found here.
Unfortunately, many websites discuss the recent tax credit in a sophisticated manner that is difficult to understand. In our view, the best reliable / government-backed layman explanation can be found here, with ENERGY STAR: (www.energystar.gov/about/federal_tax_credits/insulation)’
Unfortunately, many websites discuss the recent tax credit in a sophisticated manner that is difficult to understand. In our view, the best reliable / government-backed layman explanation can be found here, with ENERGY STAR: (www.energystar.gov/about/federal_tax_credits/insulation)’
