Residential Insulation of Retrofit Tax Credits and New Home Builder Tax Credits

ICAA is pleased to provide its members with a condensed look at federal government tax incentives reinstated for 2022 and new incentives beginning January 1.

In Summary, the 25C Residential Efficiency Tax Credit (insulation retrofits) has been restored up to $500 through 12/31/22. Starting next year and good through 2032, the 25C credits jumps to a maximum of $1,200.

The Previous 45L Builder New Home Tax Credit of $2,000 per home is restored through 2022, and is upgraded to a maximum of $5,000 starting in 2023.

The HOMES Act state rebate program will be developed and implemented by the state energy offices. It will take a while for the states to sort this out and get these started.