Residential Tax Credits for Homeowners and Builders

The Inflation Reduction Act (IRA) directed an unprecedented $369 billion toward energy saving initiatives through tax credits. These tax credits will have numerous benefits including improved energy efficiency, reduced energy bills, and improved home comfort for both new and existing homes throughout our service areas.

Tax credits can be combined with local incentives for even bigger savings!

IRA tax credits include:

  • Residential retrofit incentives

  • New and retrofit commercial incentives

  • New home incentives

  • Efficient building envelopes through building codes

Green and white house models with money on light background
North Dakota neighborhood with older homes.

Some key points from the Act include:

Residential Retrofit Incentives (25C)

  • Previous law’s credit restored through 2022. Enhanced credit amount applies from January 1, 2023 to December 31, 2032.

  • 30% of insulation and air sealing materials up to $1,200 (per year).

  • Credit available on a yearly basis.

  • Home energy audits covered up to $150.

New Home Incentives (45L)

  • Builder credit of $2,500 for single family homes that meet ENERGY STAR Version 3.2 and meet 2021 IECC prescriptive envelope standards.

  • Builder credit of $5,000 for homes that meet DOE Zero Energy Ready Home standard.

  • Builder credit of $500 / $1,000 for multifamily units, with incentives increasing to $2,500 / $5,000 when meeting prevailing wage requirements.

  • Previous law’s credit restored through 2022. Enhanced credit amount applies from January 1, 2023 to December 31, 2032.

Framed living‑room under construction with white spray‑foam on ceiling and walls, Tyvek‑covered windows, and exposed studs.

Get Started Today

Remember, there are many components to this act and many ways you can save, but tax credits are subject to program changes. For the latest information on tax credits, don’t hesitate to reach out to our team. We’re happy to answer any questions you may have. Contact us today to discuss your insulating project and how tax credits can help you save energy and money.