The federal government does offer some tax credits for insulation and other energy efficiency improvements in the home.
Unfortunately, Crawl Space Ninja does not have the lobbying power to get tax credits approved specifically for crawl space encapsulation or basement waterproofing. But, there are several federal and local tax credits you should be aware of for 2022 and 2023.
What is a Federal Tax Credit?
A tax credit is an amount of money that taxpayers can subtract from the potential income taxes owed. They tend to be better than deductions because they reduce the tax owed, not just the taxable income.
There are multiple types of tax credits. Check out Investopedia.com for more information.
Local Municipal Rebates
Many power companies offer local rebates for equipment or insulation installed as well. This is separate from a federal tax credit. For example, our local utility company offers a $400 rebate for an ERV charger. These vary greatly and change often so check with your local utility company for details.
Crawl Space Insulation Tax Credit
There are many rules when it comes to getting a tax credit so check with your local CPA (Certified Public Accountant) for details. According to EnergyStar.gov, the crawl space may receive a tax credit on insulation, air sealing, and weather stripping. Insulation could apply to subfloor or foundation wall insulation.
One-component spray foam sealants, caulks used in air sealing, and door weather stripping may also qualify.
Unfortunately, labor to install these products cannot be used towards the rebate. It appears you only get credit for the purchase price of the materials. The good news is you may be able to get credit if the items are installed by you or a professional. The amount of the tax credit is 10% of the materials cost up to $500.
You may be able to combine items like HVAC, water heaters, and insulation to get up to $3,200.00. Learn more at the EnergyStar Insulation Tax credit web page.
What Does Not Qualify for a Tax Credit?
As I mentioned, no credit is available for labor for insulation, but labor may count towards other services like HVAC installation.
Also, the credit is only available for your primary residence. You cannot get a credit on second homes or investment property. Commercial property has its own rules and regulations. New construction does not qualify for tax credits either.
However, it can include a houseboat, mobile home, cooperative apartment, condominium, and manufactured home.
Contact Crawl Space Ninja for Basement Waterproofing and Encapsulation
Please contact us to schedule your assessment to fix your crawl space, basement issue.
Do you need help with mold removal, crawl space encapsulation, crawl space insulation, vapor barrier, waterproofing, foundation repair, basement waterproofing, or controlling humidity in your crawl space?
If you live in Georgia, Delaware, North Carolina, South Carolina, Tennessee, or Kentucky, Crawl Space Ninja can help!
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1 thought on “Crawl Space Insulation Tax Credits for 2022 & 2023”
Great info here. I recently went through the effort to spray closed cell foam in my crawlspace along exterior walls and up to the sill as well as put down a new vapor barrier. Happy to know I’ll get some dough back from Uncle Sam. Between costs associated with air seal products, a new water heater and installing some minisplits for my house, happy to know I’ll be maxing out my Energy Efficient Home Improvement Credit for 2022.