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Does crawlspace encapsulation qualify for the Residential Energy Credits?

I completed a crawlspace encapsulation project in my home. Cost was $4000. 
This completely encapsulated the crawlspace with 36mil reinforced poly fiber all across the ground and up the walls, creating a vapor barrier. 
As promised, this has *significantly* improved the efficiency of my HVAC system since installation. 
Is this deductible in accordance with the Home Energy Credits section? 

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1 Best answer

Accepted Solutions
Vanessa A
Expert Alumni

Does crawlspace encapsulation qualify for the Residential Energy Credits?

Yes, insulating your crawl space would qualify you for the Home Improvement Energy Efficiency Credit.  This credit is 30% of the cost of the project with a cap of $4,000.  You cannot claim the cost of labor for insulation, only the product itself.  So, if they did not give you a detailed invoice, you will need to reach out to the contractor to get one.  

 

The Home Improvement Energy Efficient Credit is a nonrefundable credit

  • Worth up to 30% of costs with a maximum credit $2,000 for
    • Air source heat pumps
    • Heat Pump Water Heaters
    • Biomass Stoves or Boilers
  • Worth up to 30% of qualifying costs for a maximum combined total of $1,200 for the following:
    • Doors, Windows and Skylights
    • Insulation
    • Natural Gas, Oil Propane Water Heaters
    • Furnaces
    • Boilers
    • Central Air Conditioners
    • Electrical Panel Upgrades
    • Home Energy Audit (up to $150)
  • You can combine the $2,000 credit with the $1,200 credit for a total of $3,200
  • This credit is a use it or lose it credit.  If you do have enough tax liability in the year you buy and install the item, you will not be able to carry the credit forward.
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1 Reply
Vanessa A
Expert Alumni

Does crawlspace encapsulation qualify for the Residential Energy Credits?

Yes, insulating your crawl space would qualify you for the Home Improvement Energy Efficiency Credit.  This credit is 30% of the cost of the project with a cap of $4,000.  You cannot claim the cost of labor for insulation, only the product itself.  So, if they did not give you a detailed invoice, you will need to reach out to the contractor to get one.  

 

The Home Improvement Energy Efficient Credit is a nonrefundable credit

  • Worth up to 30% of costs with a maximum credit $2,000 for
    • Air source heat pumps
    • Heat Pump Water Heaters
    • Biomass Stoves or Boilers
  • Worth up to 30% of qualifying costs for a maximum combined total of $1,200 for the following:
    • Doors, Windows and Skylights
    • Insulation
    • Natural Gas, Oil Propane Water Heaters
    • Furnaces
    • Boilers
    • Central Air Conditioners
    • Electrical Panel Upgrades
    • Home Energy Audit (up to $150)
  • You can combine the $2,000 credit with the $1,200 credit for a total of $3,200
  • This credit is a use it or lose it credit.  If you do have enough tax liability in the year you buy and install the item, you will not be able to carry the credit forward.
**Say "Thanks" by clicking the thumb icon in a post
**Mark the post that answers your question by clicking on "Mark as Best Answer"
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