How Duct Sealing Fits Into The IRS Section 25C Update
While some parameters and details of the inflation Reduction
Act are still being decided by the IRS and local/state governments,
we do know the following:
- Section 25C Tax Credit expanded from 10% to 30% starting in 2023.
- Homeowners can take 30% up to $1,200 for air sealing in the building envelope components category, also known as weatherization.
- The $1,200 tax credit does not include labor.
- Air Sealing must meet 2021 IECC code.
- Tax credits for heat pumps ($2,000), electric panels for heat pump ($600), and heat pump hot water heaters ($2,000) are also available.
- State, local, and/or utility rebates can be layered, but the homeowner must subtract the rebated amount from the total cost of improvement before claiming a federal tax credit.
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