BOULDER Blog

Inflation Reduction Act of 2022: Insulation Tax Credits & Rebates

What is the inflation Reduction act?

The Inflation Reduction Act (IRA) was passed by the Senate on August 7 and signed into law on August 16. Within this 10-year plan, billions of new funds are going to be allocated to rebate programs and other funding mechanisms aimed at providing support to efficiency improvements. For homeowners, this just increased your return-on-investment opportunities for energy efficiency upgrades throughout the house.

What is the Residential Efficiency Tax Credit (25C)?

Initially created under the Energy Policy Act of 2005 (EPAct) and added to the federal tax code under Section 25C, the program has been expanded and extended under the IRA (Section 13301).  The main change for homeowners in the Colorado-region to be aware of is the increase in eligible tax credits: (1) 30% of insulation costs up to an annual maximum of $1,200 and (2) 30% for any solar upgrades to the home (such as solar attic fans).

What this means for homeowners?

This bill is aimed at incentivizing homeowners to pursue eco-friendly products and services by granting sizeable tax credits to those that pursue these projects.  As we often preach on here, upgrading and updating your insulation is a great way to improve your home’s comfort, lower your utility bills, and curtail wasted energy.  The GREAT news – is the US Government just helped make our services even more affordable, and significantly shortened your return-on-investment horizon.

What’s next?

Call us today to get an evaluation of your home’s insulation.  We are happy to walk you through benefits, costs, and what to expect from rebates!