By 
Over 1,000 insulation, HVAC, and manufacturing companies signed a letter to House Ways and Means and Senate Finance Committee leaders last week urging them to save the 25C Energy Efficient Home Improvement Tax Credit. The $1,200 homeowner tax credit is vulnerable to repeal as congressional lawmakers identify cost savings to pay for extending the corporate and individual tax rates set during the first Trump Administration.
Why is the 25C Tax Credit Important?
The 25C tax credit helps homeowners get over the first cost hurdle in making home energy efficiency improvements. Insulation contractors use the credit to market energy efficiency retrofits to homeowners, highlighting the benefit of lower utility bills and improved home comfort.
The 25C tax credit was updated in 2022 to allow homeowners to take up to $1,200 for insulation and air sealing improvements to their homes. In 2023, 700,000 tax filers took advantage of the credit for insulation upgrades. Since most homes in the United States are over 40 years old, they are less energy-efficient than homes built today. In fact, an estimated 89 percent of U.S. homes are under-insulated, wasting energy and increasing utility costs.
According to the U.S. Environmental Protection Agency’s ENERGY STAR estimates, the typical homeowner can save 15 percent on heating and cooling costs by air sealing and adding insulation to their homes.
Grassroots Engagement Needed
The insulation industry has initiated a grassroots effort to save the 25C tax credit. Interested stakeholders can:
Find Your Congressional Representative: Enter your zip code on the House of Representatives website to find your congressional representative.
Make the Call: Dial (202) 224-3121 to connect with your congressional representative’s office to voice your support for the 25C Tax Credit.
Send an Email: Go to the websites for your senators or congressional representative. Take advantage of the comment section and send a note explaining that the 25C tax credit supports local business and homeowners.
Voice Your Support: Urge them to protect and maintain the updated 25C Energy Efficient Home Improvement Tax Credit.
Important Points to Raise
I have a business in your District. I support the 25C Energy Efficient Home Improvement Tax Credit. I DO NOT want Congress to weaken or eliminate it in the tax bill being considered by Congress.
The credit helps homeowners reduce the first cost of making these improvements. Our industry sees it as an important incentive for promoting insulation upgrades in existing homes.
I hope the Congressman/Congresswoman will oppose eliminating or weakening the 25C tax credit. It is helping homeowners and businesses in his/her district.
Why Does This Matter?
One of the priorities of the Trump administration is unleashing the power of America’s affordable and reliable energy and natural resources. Energy efficiency can boost regional and national energy security by reducing overall energy demand and reliance on foreign oil and gas imports. Insulation is the cheapest, most readily available technology to support building energy efficiency and reduce electricity demand.
Conclusion
With energy demand expected to rise in the United States by an average of 9 percent by 2028, finding ways to cut energy demand and usage is critical to limiting future rate increases. Insulation and air sealing can reduce peak electric load, representing times of highest energy demand, by 7-10 percent. These demand reductions are essential because high peak load drives the need for additional power plants, transmission lines, and distribution system upgrades. These are significant costs that utilities typically recover from customers through their electricity bills.
With so many advantages to the 25C tax credit, the time is now to urge Congress to maintain it.