Energy Efficient Home Improvements (Home Energy Credits)

[anthony340]

I had my attic space insulated.  Is that a tax deduction that I can file? Besides the material costs. Can I add the labor costs too?

[Vanessa A]

Yes, you can take the Home Improvement Energy Efficient Credit for the insulation you had installed in your attic, but only for the materials.  You cannot take include the cost of labor. 

This is a non-refundable credit meaning you can only take it if you have enough tax liability to take the credit. 

• Worth up to 30% of qualifying costs for a maximum combined total of $1,200 for the following:
  • Doors, Windows and Skylights
  • Insulation
  • Natural Gas, Oil Propane Water Heaters
  • Furnaces
  • Boilers
  • Central Air Conditioners ($600 maximum Credit)
  • Electrical Panel Upgrades
  • Home Energy Audit (up to $150)
• This credit is a use it or lose it credit.  If you do have enough tax liability in the year you buy and install the item, you will not be able to carry the credit forward.
• NOT available for new construction.

[Opus 17]

For tax year 2023, the insulation must meet or exceed the efficiency standards set by the International Energy Conservation Code for 2021.  So whether your project actually qualifies will depend on what the standard is for your part of the country, and whether the insulation you installed meets that standard.

Then, as said, only the cost of materials are allowed.  If your contractor did not break out the price for you, you will have to make a "reasonable allocation."