Improving home insulation is a great way to increase the efficiency and value of your home. In addition to the cost and energy savings that come from improving home insulation, you may also be able to save money through tax credits and government rebates.

In the United States, both the federal and state governments are encouraging people to make their homes more energy efficient. These incentive programs may help homeowners pay for upgrades, such as improved insulation, that reduce their home’s energy use.

Government Insulation Rebates

A variety of rebate programs encourage homeowners to purchase specific, energy-saving types of insulation. For example, some manufacturers may offer rebates after you purchase certain energy efficient products. You can search for rebate programs you may qualify for on the ENERGY STAR® website.

If you improve your insulation, government rebates from your state may also be available. As part of the American Recovery and Reinvestment Act of 2009, all states are offering rebate programs to consumers who purchase certain energy-saving items. To find out more about rebates that are available in your area and if you qualify for an insulation government rebate, visit your state government website.

Local utility companies may also offer rebates and other incentives for making your home more energy efficient. You can contact your utility provider to get more information on programs for which you may be eligible.

Insulation Tax Credit

In addition to rebate programs, tax credits are available for improving home insulation. Currently, you may be able to receive a credit on your federal tax return for 30 percent of the total cost of the insulation upgrade, up to a total of $1,500. Talk to you tax advisor to see if you might qualify for this tax credit.

Depending on the type of upgrades you plan to make to your home, you may qualify for additional tax credits, deductions or government assistance. These can include deductions for home improvement expenses on your tax return. Your state may also have tax credits to encourage residents to make their homes more energy efficient.

Insulation Grants

A number of government programs offer grants and other financial assistance to homeowners and businesses that are upgrading insulation. The Federal government’s Weatherization Assistance Program, for example, offers grants to low-income families to upgrade their home’s insulation and make other improvements.

State and local government may also offer grants to low-income people who want to improve their home’s insulation. Visit your state or local government website for more information.