What does that mean for the spray foam industry?
Section 25C Tax Credit for Qualified Energy Efficiency Improvements offers a 10% tax credit worth up to $500 for homeowners for qualified energy-efficiency upgrades such as building insulation. Let your potential customers know they can earn this tax credit with insulation upgrades in their principal residences through the end of 2020! This is an awesome way to generate more business with existing homes!
How does a taxpaying homeowner qualify for the tax credit?
Qualified energy efficiency improvements are eligible for the tax credit. A qualified energy efficiency improvement is an energy efficiency building envelope component such as insulation materials or systems which are specifically and primarily designed to reduce the heat loss or gain for a dwelling:
(1) that follows the prescriptive criteria of the 2009 International Energy Conservation Code;
(2) that is installed in or on a dwelling located in the United States and is owned and used by the taxpayer as the taxpayer’s principal residence;
(3) the original use of which commences with the taxpayer; and
(4) that reasonably can be expected to remain in use for at least five years.
Your customers can use the latest version of IRS Form 5695 to apply for the tax credit.