topic Re: Deduction for improved insulation in Get your taxes done using TurboTax

Deduction for improved insulation

bryanprior — Wed, 02 Apr 2025 22:52:18 GMT

I put up new insulation and siding along my house to improve energy efficiency. I believe there's some type of deduction out there for this. If not at federal level, then definitely in New York State.

Also, to determine cost, I couldn't have put up the insulation without the siding, so I'm inclined to expense the entire ~$15,000 for the job. Is that unreasonable?

Re: Deduction for improved insulation

DianeW777 — Wed, 02 Apr 2025 23:06:51 GMT

You will need to know only the cost of the insulation because only that would be a home energy efficient cost allowed.

Building envelope components

To qualify, building envelope components must have an expected lifespan of at least 5 years. Qualified components include new:

Exterior doors that meet applicable Energy Star requirements. Credit is limited to $250 per door and $500 total.
Exterior windows and skylights that meet Energy Star Most Efficient certification requirements. Credit is limited to $600 total.
Insulation and air sealing materials or systems that meet International Energy Conservation Code (IECC) standards in effect as of the beginning of the calendar year that is 2 years prior to the calendar year in which such component is placed in service.
- For example, materials or systems installed in 2025 must meet the IECC standard in effect on Jan. 1, 2023. These items don't have a specific credit limit, other than the maximum credit limit of $1,200. Insulation and air sealing materials or systems are they only types of qualifying property that do not have to meet the qualified manufacturer and PIN requirements.

Labor costs for installing building envelope components don't qualify for the credit.

Where do I enter qualified energy-saving improvements?

Re: Deduction for improved insulation

bryanprior — Wed, 02 Apr 2025 23:43:12 GMT

Ok but I still have some questions. Do I have this right?

(1) labor costs don't count

(2) I should only count price of insulation

What about cost of siding and furring strips for siding that went on top of insulation? That was required for longevity of insulation and insulation wouldn't last without it.

Re: Deduction for improved insulation

ThomasM125 — Wed, 02 Apr 2025 23:48:39 GMT

The siding would likely not be allowed, but it probably doesn't matter as the maximum credit is $1,200. So, you can only treat the first $4,000 of the job towards the credit. The credit is 30% of the cost so $4,000 is the maximum cost allowed.

Re: Deduction for improved insulation

bryanprior — Wed, 02 Apr 2025 23:54:14 GMT

I forgot, I had a new door too. Door cost ~$1,000 (without install). I see max door refund is $250. Would that $1,000 for door count toward the $4,000, or is it separate?

Re: Deduction for improved insulation

SharonD007 — Thu, 03 Apr 2025 00:05:53 GMT

Yes, the $1,000 for the cost of the door would be included in the first $4,000.