With the 25C tax credit, you can deduct 30% of your weatherization project expenses (up to $1,200) from your year end taxes. However, there are caps on specific categories of spending:

• Insulation and air sealing: $1,200
• Doors: $250 per door, up to $500
• Windows: $600
• Energy audit: $150
• Electrical panel upgrade: $600

The tax credit resets each year.

Examples

To illustrate how this works, here are a few examples.

‍Home #1

‍Homeowners start with an energy audit to find out what weatherization projects they need to do. They learn that their attic needs insulation, and they need to replace their front door because it's letting lots of heat escape.

Home #2

‍Homeowners already know where their problem areas are: they need to replace their living room windows. Additionally, they need to add some air sealing around the windows upstairs and re-insulate the envelope of their home. They choose to break the project up across two years.

In year 1:

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In year 2:

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If you have any questions about how the 25C credit applies to your projects, reach out to us at concierge@canopyclimate.com.