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According to new data released by the U.S. Treasury Department, for the 2023 tax year, more than 3.34 million U.S. taxpayers claimed at least one of the home energy efficiency tax credits made available in the Inflation Reduction Act (IRA). In all, more than $8 billion in residential clean energy and home energy efficiency credits were claimed against 2023 federal income taxes.
A Deeper Dive into the Numbers
Some 1.2 million families claimed more than $6 billion in credits for residential clean energy (solar generation, solar water heating, battery storage, and other technologies), averaging $5,000 per household. In addition, nearly 2.3 million families claimed more than $2 billion in credits for home energy efficiency improvements, including insulation and air sealing, heat pumps, windows and doors, and energy-efficient air conditioners – averaging $880 per family.
In all, nearly 700,000 families claimed the 25C tax credit for insulation and air sealing in 2023. By contrast, when the 25C tax credit was elevated temporarily from 2009 – 2010, the yearly average of claims for air sealing and insulation exceeded 2.5 million tax filers.
Addressing thermal air sealing and insulation in home energy efficiency upgrades is critical to obtaining peak home energy performance, so lagging numbers on the use of the 25C tax credit reveal the need for increased promotion of the credit to spur greater use.
See chart below:
NAIMA and Energy Circle to Promote 25C
NAIMA has partnered with Energy Circle to launch the “25C Means Business” campaign to help insulation contractors improve their marketing on the tax credit to homeowners. The campaign offers free marketing tools, including sales and marketing training, landing page content, blog articles, infographics, and videos that can easily be added to contractor websites to promote the tax credit.
“Our research showed that contractors did not have the tools to talk to homeowners about the 25C tax credit,” said Curt Rich, President and CEO of NAIMA. “This campaign offers ready-made marketing content to help with that effort, and we’ve already seen hundreds of insulation contractors take advantage of these tools.”
If you’re an insulation contractor, you can sign up for free marketing support on 25C by visiting the campaign website and signing up.