If your HVAC system isn’t running efficiently, it’s likely costing you more than it should. Leaky ducts can be a major hidden culprit, causing uneven heating or cooling in your home and leading to higher energy bills. Air escaping through unsealed ducts forces your system to work harder, wasting energy and straining your HVAC equipment. This can be frustrating, especially when you're not sure how to resolve the issue cost-effectively.
With over 16 years of experience, our team of experts at A&E Plumbing, Heating and Air have helped countless homeowners tackle these exact problems. We specialize in improving the efficiency and comfort of homes by addressing poorly sealed ductwork. Our expertise ensures that we not only know the best practices for duct sealing but also how to maximize savings using government incentives like those offered under the Inflation Reduction Act (IRA).
By the end of this article, you’ll know exactly how the Inflation Reduction Act (IRA) can help you save money on duct sealing and boost your home’s energy efficiency. We'll break down the tax credits and rebates available under the IRA, so you can confidently seal your ducts, reduce energy waste, and lower your utility bills—without overspending on repairs.
Why the Inflation Reduction Act Includes Duct Sealing
The Inflation Reduction Act (IRA), passed in 2022, is one of the most significant
pieces of legislation aimed at addressing climate change in U.S. history. The Act focuses on reducing greenhouse gas emissions, promoting clean energy, and improving energy efficiency across homes and businesses. A major component of the IRA is its emphasis on energy efficiency improvements in residential buildings, which is where ductwork sealing plays a crucial role.
Poorly sealed ducts are a significant source of energy inefficiency in homes, with 20-30% of air being lost through leaks in the duct system. This results in higher energy consumption, as HVAC systems need to work harder to maintain desired temperatures, leading to increased emissions and utility costs. By offering tax credits and rebates for duct sealing, the IRA is encouraging homeowners to take action that directly improves their home’s energy efficiency.
Duct sealing aligns with the IRA’s overarching goals of reducing national energy consumption, lowering greenhouse gas emissions, and saving homeowners money on their energy bills. Through measures like these, the IRA aims to help the U.S. cut its emissions by 40% by 2030, while making clean energy and energy efficiency improvements more accessible and affordable for average homeowners.
What the Inflation Reduction Act (IRA) Covers
Under the Inflation Reduction Act, duct sealing qualifies for a 30% tax credit as part of the Energy Efficient Home Improvement Credit (Section 25C). This credit encourages homeowners to upgrade their homes with energy-saving improvements. Here's how the IRA applies:
Duct Sealing Qualifies
The Inflation Reduction Act (IRA) applies to all types of duct sealing and air sealing materials, not just Aeroseal. This includes products such as weather stripping, caulk, spray foam, and other sealing systems designed to improve the energy efficiency of your home by reducing heat loss. These materials qualify under the Energy Efficient Home Improvement Credit (Section 25C), which provides a 30% tax credit up to $1,200 annually for duct and air sealing projects.
The key requirement is that these materials must come with a Manufacturer’s Certification Statement verifying their energy efficiency. Installation costs can also be included when claiming the tax credit for qualifying products under the IRA, making it easier for homeowners to reduce costs associated with energy-saving upgrades. So, whether you're using Aeroseal or another barrier seal product, the IRA can help you save on these improvements.
Labor Costs Included
Unlike some other improvements, the IRA also allows you to include installation labor costs for duct sealing in the tax credit. This means you can save on both materials and labor.
To ensure you qualify, keep detailed records of your expenses, including receipts for both materials and labor, and be sure the products meet the energy efficiency guidelines set by the IRA.
Annual Cap
Homeowners can claim up to $1,200 annually for qualified weatherization improvements, which include duct sealing. This ensures you can take advantage of the credit without hitting an unreasonable spending limit.
How to Maximize Your Home Improvement Savings
When planning a duct sealing project under the IRA, there are several important steps to follow to ensure you maximize your savings through the available tax credits:
1. Save Receipts and Documentation
It’s crucial to keep thorough records of all expenses related to your duct sealing
project. This includes the cost of materials (such as sealants, caulk, and insulation) as well as labor costs for the installation. Having detailed receipts will help you when it's time to claim your tax credit, and you'll need this documentation to show that the materials and services meet the required energy efficiency standards.
Key Tip: Store copies of your receipts, contractor invoices, and any Manufacturer's Certification Statements that prove the energy efficiency of the materials used.
2. Consult with Professionals
Before starting your duct sealing project, it’s important to work with a qualified HVAC contractor. They can help ensure that the materials and services used in the project comply with the standards set by the IRA. Not all products will automatically qualify for the tax credit, so professional guidance will help you choose the right materials that meet energy efficiency benchmarks. Certified contractors are familiar with the regulations and can help ensure the project is eligible for the credit.
Why It Matters: A contractor with experience in energy-efficient upgrades will use approved materials and techniques, ensuring your project complies with the IRA requirements and avoiding any issues when claiming the credit.
3. File IRS Form 5695
To claim your Residential Energy Credits, you will need to file IRS Form 5695 when doing your taxes. This form allows you to list qualified energy-efficient home improvements, including duct sealing, and calculate the credits you're eligible for. You can also use this form to claim credits for other projects like insulation or installing energy-efficient HVAC systems.
How It Works: Once the form is filled out, the total tax credit (up to 30% of your project costs, with a maximum of $1,200) will be applied to reduce the taxes you owe for that year. If you're making multiple improvements, Form 5695 consolidates all of them, making the process easier for homeowners.
Duct Sealing Under the IRA Means Big Savings
When you started reading, you were likely concerned about energy loss and rising
utility bills due to inefficient ductwork. Now, with a clearer understanding of how the IRA applies to duct sealing, you know how to take advantage of tax credits and rebates to improve your home’s energy efficiency. By learning how to plan your project and maximize your savings, you’ve empowered yourself to make a smart investment that will pay off in the long run.
To maximize your savings and energy efficiency, it’s time to choose the right sealing solution for your home. Head over to our detailed breakdown of the top 3 duct sealing options eligible for IRA tax credits — this will ensure you're making the best, most cost-effective choice to seal your ducts and lower your energy bills.
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