Adding the right insulation to your home could save you a ton of money on your monthly energy bills, but wait, there’s more.
Did you know your energy provider might offer energy efficiency rebates that could save you money on the project right from the start? Not only are there rebates, but the Inflation Reduction Act of 2022 has made energy efficiency tax credits available to homeowners.
We’re not pulling your leg. It’s just a matter of finding those home insulation rebates to help lower the cost and ensuring your project qualifies for the tax credit.
RetroFoam of Michigan has been helping homeowners make their homes more comfortable and energy efficient with foam insulation. We aim to help homeowners save as much money as possible in energy savings and rebates, and we even go so far as to fill all the paperwork out for them. Consumers Energy has recognized us for our work to increase a home’s energy efficiency.
Speaking of energy efficiency updates, creating an air seal in the home with foam is just one project that qualifies for the insulation tax credit. One thing to remember is that the credit isn’t cash in hand but does go towards any tax liability you might have.
More on that in a moment.
Now to the task at hand, let’s talk about finding rebates for insulating your home and how the tax credit can work for you.
Finding Home Insulation Rebates
You want to find rebates for your home insulation project, and you have a couple of resources available to you to do that.
Energy Star Website
The U.S. Department of Energy has a section devoted to making homes more energy efficient – Energy Star.
On the Energy Star website, you can search for rebates that you could be eligible for state-by-state.
Your Energy Provider
Contact your energy provider directly to see what rebates are available for insulation projects.
A Michigan homeowner who makes energy-efficient home improvements are eligible for rebates from Consumers Energy, DTE, and SEMCO, as well as other companies across Michigan.
These rebates can vary between $50 and all the way up to $1,000, depending on the scope of work.
Your Insulation Contractor
Before the insulation project even begins, see if your contractor knows of any rebates you could be eligible for.
If they are in the business of making homes more energy efficient with insulation, they should be able to steer you in the right direction.
Energy Efficiency Tax Credit for Michigan Homeowners
The Inflation Reduction Act of 2022 allows homeowners who make any qualifying energy-efficient upgrades to their home, like adding foam insulation, to claim up to $1,200 in tax credits.
Tax credits previously were up to $500 one time only for energy-efficient home upgrades, while the new credit is up to $1,200 each year from 2023 until 2032.
Unlike rebates which are cash in hand or money taken off of the insulation project invoice, tax credits go specifically to your tax liability. That means if you owe money, that credit will go toward the amount owed.
Adding Foam Insulation to Your Michigan Home
As you can see, creating an air seal in your home and establishing your building envelope will make your house more energy efficient.
Making your home more energy efficient with foam insulation throughout can earn you rebates and a tax credit, but it can also save you money on monthly energy bills.
If you want to learn more about the benefits of foam insulation, check out the Learning Center on our website, where you’ll find a bunch of great resources.
If you’d like to learn more about rebates, check out the Insulation Rebates page on our website.
About Amanda Ringler
Amanda previously has worked as a breaking news and crime reporter, TV news producer, and editor in Flint and Detroit. Throughout her career as a journalist, she has won several awards from The Society of Professional Journalists - Detroit Chapter and the Michigan Press Association. As part of the RetroFoam of Michigan family, Amanda uses her experience as a journalist to write content that will help educate homeowners on the benefits of foam insulation. When Amanda isn’t writing, she’s spending time with her husband and rescued huskies. She also loves knitting, making art, cooking, and hosting dinner and a movie night for friends and family.