Are you looking to save big on insulation and energy-efficient home upgrades? The Inflation Reduction Act (IRA) has brought a lot of attention to the potential savings available through various incentives. While some of these incentives, like the 30% Energy Efficient Home Improvement Tax Credit, are already in effect, other programs, such as HOMES and HEEHR rebates, are still in development and may not be available until late 2023 or early 2024.
But does this mean you should hold off on your insulation upgrades? Not necessarily! Here’s why acting now could be your best strategy for maximizing savings on your insulation project.
Leverage the IRA Tax Credit Alongside Local and State Rebates
The IRA tax credit is a significant opportunity that homeowners can take advantage of right now. This federal tax credit covers 30% of the cost of insulation and air-sealing materials. For instance, if you’re planning a $3,500 insulation project with $2,500 in materials, you could save $750 on your taxes. That’s money in your pocket as soon as you file your tax return.
But don’t stop there—many states and local utility companies already offer rebates for insulation and air-sealing projects. These existing rebates can often be combined with the IRA tax credit, significantly increasing your overall savings. Waiting for the new IRA rebates might not be necessary when you can already capitalize on multiple incentives today.
The Potential Downsides of Waiting for IRA Rebates
Is it worth waiting for the IRA rebates to kick in? While the answer is not straightforward due to ongoing uncertainties about the details of these rebates, there are compelling reasons why delaying your upgrades could be costly:
- Higher Energy Costs: Every month you wait with under-insulated or poorly sealed homes, you continue to pay higher energy bills. The savings from delaying might be offset by the extra costs you incur while waiting. Plus, you’ll endure another season of discomfort due to inconsistent home temperatures.
- Increased Demand and Scheduling Delays: Once the IRA rebates are officially available, it could trigger a rush of homeowners seeking to schedule insulation work. This surge in demand might result in longer wait times for contractor availability, potentially delaying your project for several months. We’ve seen similar scenarios during the pandemic, and it’s not unlikely to happen again.
Get Started with a Free Insulation Evaluation from Koala Insulation
The smartest first step towards upgrading your home’s insulation is to schedule a free home evaluation with a trusted insulation contractor. By connecting with your local Koala Insulation team, you’ll work with experienced professionals who will thoroughly inspect your current insulation, identifying areas where insulation is missing, damaged, or outdated.
This comprehensive evaluation, often referred to as an energy audit, will pinpoint where your home needs air sealing and additional insulation. You’ll receive personalized recommendations on the best insulation materials for your needs, along with a detailed overview of all the available incentives, including the IRA tax credit and any applicable state and utility rebates.
Don’t wait to start saving—contact Koala Insulation today to schedule your free evaluation and begin your journey toward a more comfortable, energy-efficient home. Call Koala Insulation today and get started on maximizing your insulation incentives.
Have question? Contact Koala Insulation of the East Valley today.
