Tax Credits for Insulation

IRA amended the credits for energy efficient home improvements under § 25C of the Internal Revenue Code. Formerly known as Nonbusiness Energy Property Credit the amended tax credit for energy efficient home improvements under § 25C was extended through December 31, 2022, with a lifetime cap of $500. Starting January 1, 2023, through December 31, 2032, the credit for “insulation materials or systems and air sealing materials or systems” increases to a maximum of $1,200 per year, based on 30% of the eligible material cost only (labor is not eligible). R-value shall be determined by the prescriptive criteria established by the International Energy Conservation Code (IECC) standard in effect at the start of the year that is two years prior to the year the materials or systems are placed in service. The insulation and air sealing portion of the credit is only for principal residences located in the United States owned and used by the taxpayer (see Treasury Reg. § 1.121-1(B) for further details. Credit for qualifying expenditures incurred for existing home or for addition to or renovation of an existing home, and not for new construction. Refer to Department of the Treasury Internal Revenue Service Form 5695 for additional information and consult your tax advisor.

Knauf Insulation certifies that any of its insulation or air sealing products listed below when properly installed and meeting the applicable IECC requirements noted above shall be eligible under § 25C of the Internal Revenue Code.

• EcoBatt® Insulation
• EcoRoll® Insulation
• Jet Stream® Ultra Blowing Insulation
• ECOSEAL Plus™ Air Sealant
• EcoFill® Wx Blowing Insulation
• Basement Wall Insulation
• Earthwool® Insulation Board
• EcoBatt® IRD Insulation