Tax Credit For Home Insulation Retrofits Extended For 2021
Once again, at the eleventh hour the U.S. Congress extended the tax credit for adding insulation in new and existing homes. The measure was included in the 2021 Omnibus Spending Bill along with the latest COVID-19 relief bill passed by congress and signed at the end of December by President Trump.
This is once again good news for homeowners, new home builders and the environment. The legislation continues the credit available to homeowners who add or retrofit/upgrade the insulation in their homes. It offers a credit against federal income tax of 10% of the cost, up to $500 (not including installation.)
So those feeling the cold enter their homes this winter will still have the incentive, beyond the lower monthly home energy bills and improved living conditions, when considering updating their under insulated homes.
The information on EnergyStar.gov website has now been updated and confirms the extension through 2021. Hopefully, moving forward, the new administration will push congress to make this important tax credit permanent or at least extend for a period of several years encouraging homeowners to continue reducing energy consumption and impacts on climate change.