[Please note! We here at Havelock Wool are wool experts, not tax experts! If you have any questions on this tax credit please do your own research and/or consult with a tax professional]
Did you know may be able to get up to 30% back ($1,200 max) on the cost of Havelock Wool residential insulation per the IRS 25c tax credit?
Here is what you need to know
Starting in 2023 the federal government established the 25c tax credit to encourage energy efficiency by reducing the amount of taxes you owe if you install qualifying upgrades in your existing home in the United States. This includes building envelope components (insulation!), home energy audits, residential energy property and heat pumps.
The tax credit is 30% of qualified expenses and the maximum credit you can claim each year is $1,200 for building envelope components, energy property costs, and certain energy-efficient home improvements. $2,000 per year is the max for qualified heat pumps, biomass stoves, or biomass boilers. The credit has no lifetime dollar limit and you can claim the maximum annual credit every year that you make eligible improvements until 2033.
Details on the tax credit for insulation.
If you installed Havelock Wool in your existing home in 2023, you can likely file for a tax credit.
Details include :
- you can get 30% back on the cost of wool with a $1,200 cap for the year it was installed (not purchased)
- labor costs for installing insulation do not qualify for the credit
- the insulation must reasonably be expected to last for at least 5 years
- Best efforts should be made to meet the insulation levels set by the 2021 IECC standard. The credit does not require third-party certification of compliance
How to get the tax credit :
The process is straightforward and involves filling out IRS Form 5695. Line 19a is where you put the details on your insulation cost. An example of the form is attached HERE.
Some other helpful links :
Official IRS explanation of 25c
IRS FAQs about Energy Efficiency Rebates
[Please note! We here at Havelock Wool are wool experts, not tax experts! If you have any questions on this tax credit we recommend doing your own research and/or consulting with an accountant. ]