Home Insulation Tax Credit 2022 vs 2023

Forum|Forum|3 years ago
September 28, 2022
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I'm debating between putting home insulation in this year (2022) or next year (2023). Is there any tax advantage to waiting until 2023? Is the tax credit the same between 2022 and 2023?

CatherineR

Hi Mike,

There is a tax advantage to waiting to do qualified home insulation for 2023 versus 2022. The credit will increase to the lesser of 30% of the cost of the qualified improvement or $1200 each year. The old credit contained a lifetime cap of $500. Under the Inflation Reduction Act legislation, lifetime caps are eliminated. Instead, there is a $1,200 overall annual cap on the new credit with exceptions for certain improvements. Here is a good resource to review:

https://www.nolo.com/legal-updates/energy-related-tax-credits-homeowners-can-use-from-the-2022-inflation-reduction-act.html

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