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Residential Retrofit Incentives

Congress passed and the President signed into law the Inflation Reduction Act of 2022, legislation that, among other things, encourages homeowners to improve their home energy efficiency. This is significant to homeowners, to our industry, and to our country. It's a Big Deal.

This translates to an extraordinary incentive to the homeowner that will reduce the cost of improvements to the energy efficiency of existing homes through the addition of insulation and air sealing. This tax credit will reduce the homeowner's tax liability by up to $1200 (revised from the previous limit of $500, which is in effect through 2022).

  • A $1200 annual tax credit limit is available to eligible homeowners beginning January 1, 2023, versus the previous S500 credit limit: the previous lifetime credit limitation is eliminated.
  • The tax credit will increase to 30% (an increase from 10% of the amount paid by the homeowner for qualified energy efficiency improvements)

Residential Efficiency Tax Credit (25C)


  • 30% of insulation and air sealing materials up to $1,200
  • Credit available on a yearly basis
  • Home energy audits covered up to $150

Save $33.42/sq. ft.

Where energy is lost in the typical two-story home

Considerable savings potential for existing homes.

ICF estimates that energy savings ranging from 10 to 45 percent can be achieved in existing homes that are air sealed and have insulation added in the ceiling and floors (and walls in limited circumstances) to levels prescribed by the 2021 International Energy Conservation Code.

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Why insulate/ventilate your home?

Your home is most likely your biggest investment. Like any big investment, improvements are necessary to ensure your home keeps its value and great condition. Improper insulation and ventilation can cause air leaks, condensation, mold growth and reduce the life of your roof, air conditioner and furnace.

Where homes leak indoor energy

Air Leakage / Ventilation

  • Drafts and cold spots
  • Ice dams may occur, leading to roof and ceiling leaks
  • Moisture problems leading to peeling paint, mold, mildew, or structural damage in walls and attic
  • Uncontrolled air exchange causing unhealthy air quality, high humidity or dryness
  • Proper exhaust ventilation in bathrooms and kitchen is needed to control moisture and pollutants
  • Freezing pipes are caused mostly by air leaks

Inadequate Insulation Levels

  • Heat is lost in the winter and gained in the summer, causing heating and cooling equipment to work harder than necessary and increasing energy bills
  • Cold exterior walls lead to discomfort and increased heating use
  • Missing insulation in attics leads to hot rooms and increased air conditioner use

Reduce your Utility Bills while Improving your Home’s Value

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