As a homeowner in Austin, one of the most cost-effective ways to improve your property is to install the right attic insulation. It’ll save you money on your energy bills, keep your home healthy and comfortable, and it’s better for the planet!
If those aren’t enough reasons to motivate you, here’s another just in time for tax season: Did you know you can offset the cost of home insulation improvements with a tax credit?
Starting in 2023, homeowners can receive tax credits worth up to 30% of the cost of eligible home energy improvements – that’s up to $1,200 a year!
In this article, we’ll explore how you can take advantage of this program and get money back for your home improvements projects.
How Better Insulation Helps the Environment
If you’re interested in qualifying for the most recent energy tax rebates, consider choosing cellulose insulation. Cellulose insulation is made from recycled materials and it is the preferred choice at Home Insulation ATX because it deters pests, improves indoor air quality, and reduces noise pollution. The right insulation also provides the following benefits:
- Lower Energy Bills – Insulation keeps your home cooler in the summer and warmer in the winter, making you less dependent on air conditioning and heating.
- Greater Comfort – With better insulation, your home will be more comfortable year-round, with fewer drafts and more consistent temperatures.
- Reduced Greenhouse Gas Emissions – By using less energy to heat and cool your home, you’ll reduce your carbon footprint and help fight climate change.
New Laws Mean New Savings For You!
In order to encourage the use of renewable energy and promote energy efficiency, the US government passed many energy-related provisions under the 2022 Inflation Reduction Act (IRA). The Energy Efficient Home Improvement Credit allows households to deduct 30% of the cost of energy efficiency upgrades from their taxes, including heat pumps, insulation, and more.
Under the IRA, you can take advantage of two different types of incentives: redeemable tax credits that can be claimed during tax filing season and partial refunds (also known as rebates) that reduce the upfront cost of green energy appliances and installations.
How to QualifyÂ
These rebates are for existing residential homes, not new developments. It must be your primary residence, not a rental property.Â
It’s important to note that the tax rebate is not an instant discount or cashback offer. Instead, it’s a tax credit that you can apply towards your federal income tax liability for the year in which you make the improvements.Â
The tax credit covers the cost of insulation and air and weather stripping materials, but not installation.Â
When booking your home insulation inspection with our customer service agents at Home Insulation ATX, we’ll ask you if you intend to apply for this rebate so we can provide you with the documentation you’ll need to submit along with form 5695 when you file your federal income taxes.
If you’re eligible, be sure to take advantage of this program to save money on your energy bills and make your home more comfortable and efficient. Â Our team of experts can help you understand the insulation process and answer any questions you may have. Book a free consultation at your convenience here:
Don’t just take our word for it! Here’s what one of our valued customers said about our cellulose insulation installation:
We had no idea we were overspending on our AC/Heating costs. We decided to change our 15/-year old home insulation to prevent squirrels from nesting again in our attic, but now we are impressed. New insulation really made a big difference in our winter´s energy bill! We will definitely recommend Home Insulation ATX. We are already happy with the savings we have seen. – Ron Alva
Here are some great resources to help you see if you qualify for other rebates and tax saving opportunities:
- Frequently asked questions about energy efficiency home improvements
- Making your home more energy efficient
- Austin Energy rebates and savings
If you have any questions, feel free to give us a call at 737-301-8148 and one of our insulation experts will be happy to help.
