Upgrading your home’s performance can provide several comfort and energy efficiency benefits, like lower utility bills and more consistent temperatures. As an investment in your home, these home improvements will pay for themselves in energy savings and last for years, but that doesn’t mean they come without a cost.
At Responsible House, we want to help our Central Virginia neighbors find ways to save on their home performance upgrades, which is why we stay up to date with the latest tax credits, rebates, and other incentives available in Waynesboro, Charlottesville, Harrisonburg, Staunton, and Lexington areas.
Insulation Tax Credits
The Inflation Reduction Act (IRA) is a federal initiative to make energy-efficient home upgrades more affordable. Within the IRA is a revitalized federal tax credit program, known as the Energy Efficient Home Improvement Tax Credit, which offers savings of up to 30% of the cost of qualifying home upgrades.
The Energy Efficient Home Improvement Tax Credit is available for homeowners to claim annually on their annual tax returns as upgrades are made from now until 2032. It offers savings up to $3,200 on several home efficiency upgrades with annual limits on qualified expenses. Home performance upgrades have an annual limit of $1,200, which includes:
- Up to $1,200 for insulation & air sealing
- Up to $150 for energy audits
How Tax Credits Work
Tax credits reduce the amount of either federal or state taxes you owe for a given year. This incentive is not instant cash in your pocket, as with a rebate, but is credited back to you when you file your tax returns.
In the case of the IRA insulation tax credits, your federal tax liability will be reduced by 30% of the cost of insulation and air-sealing for the year you made the upgrades to your home. This federal tax credit requires you to have a taxable income, that you own your home, and a completed form 5695 with your filing. Responsible House recommends that you reach out to your tax professional for more information on how to receive this incentive.
IRA Home Efficiency Rebates
The IRA also introduced two new rebate programs to help make energy-efficient and home electrification upgrades more affordable, however, they aren’t available just yet. In order to get these rebates to consumers, the state of Virginia needs to first follow strict guidelines from the federal government and apply for funding. As of September 2024, Virginia has received initial administrative funding but has not yet completed an application for either rebate program. Homeowners can check the status of Virginia’s IRA rebate application through the Department of Energy.
Local Utility Rebates
Utility companies throughout Central often offer rebates on energy-efficient home improvements. However, incentive programs fluctuate regularly, but you can always reach out to the team at Responsible House to get the latest information.
Upgrade Your Home With Responsible House
When it comes to investing in your comfort, health, and energy efficiency, Responsible House has extensive knowledge on how to provide long-lasting and reliable home improvements. As building scientists, we view your whole home as a system, with each component contributing to its overall performance. This science-based approach allows us to take the guesswork out of insulation, air sealing, and other home upgrades.
Make your house a Responsible House. Call 540-942-2061 or contact us online to get started today.
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