At Aloha Air Conditioning, we know how important it is to keep your home warm in the winter and cool in the summer. One of the major contributors to this is the insulation in your home or business. For residents of Fort Lauderdale and Pembroke Pines, Aloha Air Conditioning is here to help with all your insulation concerns.

2024 Insulation Tax Credit : A Simple Q&A Guide

Thinking about improving your home’s insulation to save on energy bills? Here’s an easy-to-follow guide on how the 2024 Insulation Tax Credit works, what you can save, and how to make the most of it.

Q: What is the 2024 Insulation Tax Credit?
A: It’s a tax break that gives you back some of the money you spend on insulation and other energy-saving upgrades. Specifically, you can get a credit for 30% of the cost of eligible insulation, up to $1,200 each year.

Q: How does this tax credit help me?
A: By reducing your tax bill! If you spend money on qualifying insulation, you can reduce your taxes by up to $1,200 per year. It’s a nice incentive for making your home more energy-efficient.

Q: What do I need to do to qualify?
A: To qualify, make sure the insulation you buy meets the International Energy Conservation Code (IECC) standards. You’ll want to ask the supplier or check the product description to confirm this.

Q: How long is this tax credit available?
A: This credit is available every year through 2032. There’s no lifetime limit, so you can claim it each year as long as you make eligible improvements.

Q: Can I only use it for insulation?
A: Insulation is one of the options, but this tax credit also applies to other energy-saving upgrades, like certain windows, doors, and heating systems.

Q: How do I claim it on my taxes?
A: When tax season arrives, keep your receipts and ask your tax preparer to include your insulation expenses as part of the Energy-Efficient Home Improvement Credit. If you do your taxes yourself, look for this section in the instructions.

By making your home more energy-efficient, you’re not only saving on your bills but also cutting down your tax payment—double the savings!

Easy Guide to Claiming the Insulation Tax Credit

Step 1: Are You Eligible?
To qualify for the insulation tax credit, make sure you meet these criteria:

• Your Home: It must be your primary residence (where you live most of the time).
• Location: Your home should be in the United States.
• Existing Home: This credit applies only to upgrades made to existing homes, not newly built ones.
• Not Just for Business: You can’t claim the credit if you use your home solely for business purposes.

Step 2: Gather Your Documents
Before you fill out your tax forms, collect the following:

• Receipts: Keep all receipts showing how much you spent on insulation materials. Remember, only the material costs are eligible; labor costs do not qualify for the tax credit.
• Itemized Bills: If you hired someone to do the installation, get an itemized receipt that breaks down the costs for materials and labor.

Step 3: Fill Out IRS Form 5695
Now it’s time to fill out the form to claim your credit:

• Complete Form 5695: Focus on the sections for energy-efficient home improvements and insulation. If you get stuck, don’t hesitate to ask a tax professional for help!

Step 4: File Your Tax Return
Once your form is complete, it’s time to include it with your tax return:

• Add the Information: Transfer the details from Form 5695 to your main tax return.
• Keep Records: Save all receipts and forms in case you need them later for verification.

Bonus: Look for Additional Savings!
Keep an eye out for upcoming rebates available through the High-Efficiency Electric Home Rebate Act (HEEHRA). This program could provide even more savings for energy-efficient home improvements!

A Simple Guide to the HEEHRA Program for Homeowners

The High-Efficiency Electric Home Rebate Act (HEEHRA) is a fantastic program designed to help homeowners improve energy efficiency while saving money. Here’s everything you need to know about the benefits and qualifications.

Financial Benefits
Through HEEHRA, eligible homeowners can receive up to $14,000 to cover the costs of electrification projects. This includes improvements like weatherization, which helps keep your home insulated and energy-efficient. For insulation specifically, there’s a rebate of $1,600 available to make your home more comfortable and reduce those summer electricity bills when air conditioning usage peaks.

Who Can Benefit?
To qualify for HEEHRA, you need to meet certain income thresholds:

• For Low-Income Homeowners: If your income is less than 80% of the area median income (AMI), you could receive the full $14,000 rebate.
• For Moderate-Income Homeowners: If your income is between 80% and 150% of AMI, you can still get a rebate of up to $7,000.

Both income categories are eligible for the $1,600 rebate for insulation improvements.

What Could Be Wrong With the Insulation?

The insulation in your home or place of business may not serve your energy needs for several reasons.

One common issue that comes up with regards to insulation is voids. Voids are areas where there is no insulation at all. This can result in around a 50 percent reduction in the effectiveness of the insulation. Sometimes these voids are necessary because of a building’s design while in other cases, a void is avoidable.

Another common problem is when insulation is compressed through the years, compromising the effectiveness of it by reducing the coverage. The tiny air pockets that serve as a barrier to the heat and cold are eliminated from the insulation when insulation becomes compressed.

Let Aloha Air Conditioning come take a look at your home or place of business. Our technicians are happy to assess the insulation situation on your property and make recommendations for areas of improvement. Our technicians have the background on how to identify problems and treat them—improving your home or business’ energy efficiency.

To learn more about possible solutions for your insulation issues, contact the Aloha Air Conditioning office Toll-Free today at 855-88-ALOHA (25642).