2024 Tax Incentives and Credits for Spray Foam Insulation

Taking advantage of tax incentives is an excellent way to directly reduce the amount of taxes you owe at the end of the year. Did you know that installing spray foam insulation in your home can help you do just that? At Spray Foam Genie, we are not only here to improve your home with the highest quality insulation, but also to keep you informed about the tax incentives you can take advantage of in 2024!

Below, we have highlighted the tax incentives offered with spray foam insulation, alongside sources you can view if more information is required. Furthermore, if you are interested in having spray foam insulation installed in your home, contact your local Spray Foam Genie to get started today!

Insulation Tax Credit 2024

  • The tax credit is effective for products purchased and installed between January 1st, 2024, and December 31st, 2024.
  • Consumers can claim 30% of the product cost; $1,200 is the maximum amount credited for the job.
  • The overall total limit for an efficiency tax credit in one year is $3,200.
  • Credits are only available to Principal Residence Owners — meaning this must be an existing home and your principal residence. New construction and rentals do not apply.

Maximizing your tax credits:

Given the way the annual aggregate limits are structured, it may be prudent to spread your improvements over a few years.   If your heating or cooling system is old, and you are considering a new air source heat pump, it is always wise to optimize your attic insulation first, so you don’t pay for more heating and cooling than you need.

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Tax Credit Extension

  • The 25C tax credit was recently extended for 10 years, through 2032.
  • Homeowners can apply for the 25C tax credit by filling out the IRS form 5695, Residential Energy Credits while doing their federal tax return. (Visit http://www.irs.gov/forms-pubs/about-form-5695 to find more information.)
  • Homeowners will need a manufacturer certification statement along with the IRS form 5695 for residential energy credits.

..... Did You Know?

According to Energy Star, “adding adequate insulation is one of the most cost-effective home improvements” homeowners can undertake.

Commercial Tax Credits

  • Commercial tax credits are available to Homebuilders or multi-family developers, starting with the retroactive extension of the 45L tax credit through the end of 2032.
  • There’s a $2,000 credit for each dwelling unit
  • Achieve 50% energy savings over 2006 IECC
  • 1/5 of savings derived from envelope improvements
Further Incentives for Commercial Developers
  • The 45L tax credit incentivizes builders, developers, and contractors to design and construct energy-efficient homes. 
  • 45L provides builders and developers with $2,000 - $5,000 in tax credits for each qualifying housing unit built or remodeled to certain energy-saving specifications. 
  • Single-family and manufactured homes qualify for an even higher credit of $5,000 for single-family and manufactured homes when they are certified as a DOE Zero Energy Ready Home (ZERH.) 
  • Criteria for what is considered “energy efficient” will align with the Energy Star and zero-energy-ready home programs from the Department of Energy.
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The Stack Effect - Why Spray Foam Insulation?

On many scorching days in Alabama, by 10 am, the attic of a house becomes excessively heated, leading to a situation where too much air is expelled, and insufficient fresh air enters through the soffits. Often, the soffits are improperly sized, and over the years, they accumulate debris, reducing the open vent space. Even in new homes, soffits are typically unbalanced, resulting in inadequate airflow. This creates negative pressure throughout the home, impacting the cool air provided by the HVAC system. The Stack Effect occurs, causing outside air to be drawn in through windows, doors, and other openings, raising indoor humidity and overworking the HVAC system. To counteract this, encapsulating the attic with a spray foam solution acts like a "lid" on the home, effectively halting the Stack Effect. This not only prevents excessive moisture, allergens, and pests but also leverages the impressive R-value of Spray Foam Insulation to resist heat and block external elements.

Find Your Local Tax Credits

At Spray Foam Genie, we are proud to serve clients across the nation. While most tax incentives apply across every state, there are specific credits available state by state. Learn more about these offerings here: https://www.dsireusa.org/

While spray foam insulation offers you tremendous benefits to improve the functionality and comfort of your home, tax incentives are also another great reason to undergo this home improvement. There is no better team to trust for the job than Spray Foam Genie!