25C Tax Credit: How to Get It
The 25C tax credit is among the best home energy improvement incentives, with significant benefits offered for qualifying improvements made through 2032. Born out of the Inflation Reduction Act of 2022, this new 30% tax credit offers incentives on insulation materials, air sealing, energy audits, and more.
Additionally, with decades of experience behind us, Wisconsin Home Improvement’s experts know a lot about how to enhance your home’s efficiency. We want to help you claim tax credits and leverage other incentives to save on home performance upgrades.
Energy prices in Wisconsin are among the highest in the Midwest, with costs continuing to soar. What if you could upgrade your home and save money on monthly energy costs? With the 25C tax credit, it’s more attainable than ever.
Home Energy Rebates
With this tax credit, you could receive up to $3,200 per year to offset the costs of installing new insulation and other improvements. However, if you have received other home improvement rebates, you may need to subtract them from the qualified expenses when applying for the 25C tax credit. This is based on conditions such as rebates from entities connected to the sale, including manufacturers and installers. State-provided incentives typically don’t have to be subtracted.
The experts at Wisconsin Home Improvement can walk you through all your options for home energy rebates, home insulation rewards, and tax credits. We can also help you make sense of the application process to ensure everything goes smoothly.
Save on Home Performance
Do you want to keep your home warmer in winter and cooler in summer while using less energy? That’s what home energy improvements can provide. To qualify, you will need to meet specific criteria, including:
- Being a taxpayer who lives in an existing home or apartment
- Purchasing qualifying services and upgrades, including insulation, air sealing, and energy audits
- Selecting upgrades that meet efficiency guidelines
- Working with qualified professionals for installation and energy audits
Let us take on the work, so you can enjoy the credit!
Do you want to keep your home warmer in winter and cooler in summer while using less energy? That’s what home energy improvements can provide. To qualify, you will need to meet specific criteria, including:
- Being a taxpayer who lives in an existing home or apartment
- Purchasing qualifying services and upgrades, including insulation, air sealing, and energy audits
- Selecting upgrades that meet efficiency guidelines
- Working with qualified professionals for installation and energy audits
Air Sealing and Insulation Benefits
Approximately nine out of 10 homes in the United States lack adequate insulation. Without proper insulation and air sealing, homes experience drafty conditions and uncontrolled thermal transfer. Not only does that make it harder to heat and cool the interior, but it also leads to a significant waste of energy. At a glance, benefits of air sealing and insulation include:
- Fewer drafts and more even temperatures throughout the home
- Improved HVAC performance that could extend equipment life
- Boosted comfort within conditioned spaces
- Increased energy efficiency for lower energy bills
- Better moisture control and indoor air quality
- Potential for qualifying for tax credits and incentives
Home Energy Improvement
Insulation and air sealing qualify for up to $1,200, with another $150 allowed for energy audits per year, according to the 25C tax credit’s guidelines. However, the benefits don’t stop at the potential tax savings. You could save 20% or more on your monthly or annual energy costs by making these changes. That improvement in your home’s energy performance can quickly add up, providing an exceptional return on investment (ROI).
The Importance of a Home Energy Audit
Your doctor can’t prescribe an effective treatment without being able to diagnose your condition, right?
Likewise, making home energy improvements would be hit or miss without an energy audit. This thorough assessment involves certified technicians evaluating your home from top to bottom, inside and out. Wisconsin Home Improvement’s BPI-certified technicians use specialized equipment and testing methods to determine how a home uses energy and where its unique challenges are. The data from a home energy audit allows us to create a tailored plan.
Next Steps to Claiming Tax Credits
Working with the right contractor is essential. Wisconsin Home Improvement isn’t all about making the sale. We prioritize helping our clients save the most money to get the best possible results. As the only Pearl-certified contractors in the state, we will be sending out personalized tax incentive reminders to all homeowners who achieved Pearl Certification during the past year through the PEARL Green Door App.
These informative documents will highlight the valuable tax credits and deductions your newly certified homes may qualify for, directly based on the energy-efficient upgrades you implemented. This includes details on federal programs like the Residential Energy Credit.
Contact us at 262.345.9922 or click here to get started.
Frequently Asked Questions
Navigating the 25C tax credit can be challenging. Browse frequently asked questions below or contact us to speak with someone directly.
Are the credits refundable or nonrefundable?
The 25C tax credit is nonrefundable. This means that they reduce your tax liability. However, if you don’t owe any taxes, the credit won’t generate a refund.
Which home improvements qualify for the energy efficient home improvement energy tax credit?
Qualifying home improvements must be new and meet efficiency standards. Examples of some of the expenses that qualify include insulation and air sealing materials that meet International Energy Conservation Code standards and home energy audits. Some of the improvements that we don’t specifically work with, but also qualify, include exterior doors, windows, skylights, water heaters, and HVAC equipment.
How do energy tax credits work?
The process is relatively straightforward. You install qualifying home improvements and keep all documentation for use when preparing your taxes. Wisconsin Home Improvement makes the process even easier by giving you access to the exclusive Pearl Green Door app, which keeps all your paperwork organized.
What is the Inflation Reduction Act?
The Inflation Reduction Act of 2022 was signed into effect by President Biden. The goals include lowering the costs of clean energy and making energy efficient improvements more accessible. Incentives exist for work completed from 2023 through 2033.
How much can I expect to save with 25C tax credits?
You could save 30% on the costs of improvements, up to a total of $1,200 per year. You can use the tax credits every year you make qualifying home improvements, allowing the savings to stack up over time.
I just bought a new home – do I qualify?
Yes, you do qualify for the 25C tax credits assuming your project meets the Home Improvement requirements.