How to Maximize Your Insulation Incentives Savings Now
There’s been a lot of media coverage about the incentives for insulation and other energy-efficiency home upgrades included in the Inflation Reduction Act legislation passed last year. While some of the incentives—like the 30% Energy Efficient Home Improvement Tax Credit—are available right now, two rebate programs—HOMES and HEEHR—are still in development and likely won’t start to be available until the end of the year or early 2024.
Does this mean that the best way to save the most on insulation and air-sealing work is to wait until rebates are available? Not necessarily! There are some great reasons why you’ll benefit most by scheduling work now—here are some of them.
Take Advantage of the IRA Tax Credit COMBINED with Local State and Utility Rebates
While we’re happy to see that new IRA insulation rebates are forthcoming, homeowners should not overlook the importance of the IRA tax credit, which offers a federal tax credit equal to 30% of the cost of insulation and air-sealing materials. For a $3,500 insulation project with $2,500 of materials, that’s $750 in savings you’ll be eligible for when you go to file your taxes.
Second, while the Inflation Reduction Act incentives are getting a lot of attention right now, they’re hardly the first opportunity for savings available to homeowners interested in new insulation and air sealing installation. Many states and local utility companies already offer insulation rebates to homeowners and customers which can be combined with the IRA tax credit to increase your overall savings. Why wait to upgrade when there’s money to be saved today?
The Risks of Waiting for IRA Rebates
Will you actually save more by holding out for IRA rebates? Because there are still a number of unanswered questions about rebates, this question is hard to answer. But there are some other compelling reasons why postponing your upgrades might not be the right move:
- Every month spent with your existing (and underinsulated) home is a month where you’re paying more than you should be in heating and cooling costs, and a month spent being uncomfortable in your house. If you’re waiting an extra year to save a few hundred dollars, are you sure that you won’t be paying that in higher energy bills anyways?
- Once rebates are available, it could lead to a stampede of customers looking to schedule work, and it’s possible that contractors could be booked out for many months in advance. This happened around the country during 2020 and 2021, and it’s not far-fetched to imagine it happening again.
Schedule a Free Insulation Evaluation with Koala to Get Started
The best first step to starting any insulation or air sealing work is to schedule a home evaluation from a qualified insulation contractor. By reaching out to your local Koala Insulation team, you can work with trained and experienced insulation experts who will conduct a thorough inspection of your home’s existing insulation, looking for areas where insulation is missing, damaged, or ready to be replaced.
With the results of your evaluation, often called an energy audit, you’ll know exactly where your home needs air sealing and insulation, and you’ll receive recommendations for insulation materials as well as a rundown of all available incentives, including the IRA tax credit and any state and utility rebates. With Koala Insulation, you’re in good hands—get the process started today and find a location near you.