Spray Foam Insulation Tax Credits

The Inflation Reduction Act

Inflation Reduction Act and how that impacts the cost of my residential insulation to me after taxes? Can I make my home more comfortable and save money on doing it?

Low hanging fruit in the Inflation Reduction Act!  Putting money in your tax return and solving your home comfort issues at the same time!

The first and easiest savings opportunity is 30% of the cost of spray foam insulation being added to areas that are identified in your home, this is capped at $1200 per year tax credit or $12,000 in tax credits over the next ten years as this is annual savings per family.  This incentive can be combined with our Building Performance Institute audit of your home for $500 which we will deduct from the scope of work you hire us to do but that $500 will net you a Inflation Reduction Act incentive of $150 tax credit.  When making these choices it is critical you be an educated consumer and add a smart thermostat with the $75 incentive that Com Ed offers.  At the moment Chicago Green Insulation does not participate in the utility rebate programs as we made the decision that the utility companies requirement that we surrender any payment due to us AFTER the work is successfully done if the program runs out of incentive money for that pay period or in any way finds that they choose not to pay us.  We aspire to get back into these programs and do have partners who can help you with any of those incentives that are available and are over and above the Inflation Reduction Act incentives.  If you choose to get a utility evaluation, that is not a Building Performance Institute audit of the energy usage and thermal challenges of your home.

We strongly encourage you to reach out and create a plan as these insulation incentives are best done with a modification to your existing heating and cooling plan.  Making your home super insulated, venting the humidity/moisture/CO2 properly to the outside and reducing your BTU’s by as much as 90% and tons of cooling by 50% or more depending on load calculations.

The Energy Efficiency Home Improvement Credit

The Energy Efficiency Home Improvement Credit, with rules not yet published here in Illinois provides up to $3,200 annually in tax credits to lower the cost of energy efficient upgrades by up to 30 percent, including the purchase of heat pumps, insulation, efficient doors and windows, electrical panel upgrades, and energy audits. Unvented attics alone typically reduce usage by 30% but it does require verification It is our understanding from CPA’s consulting with us that this incentive does not require rules to be published and that this incentive is available as of 1/1/23!

When you make these decisions it is critical to know your plan, know the trades you are trusting to help you achieve that plan and then revisit this plan annually!  At Chicago Green Insulation, we are here today and tomorrow and plan to be here for the long term so we are happy to work with you, project by project.  As you can see in other areas of my website, even in my own home I started with the attic because that is the fastest and often the easiest route to solving high utility costs and home comfort issues, then we did the basement and then the bedrooms.  We paused seven years into the work to put in a furnace that was 92% efficient and a very good but not super efficient A/C that that A/C was 50% of the tonnage of the unit it replaced due to the reduction in demand due to the air sealing and insulation we have done over the 14 years we have owned our home and the 14 years I have been in the spray foam insulation business.

If you have an existing HVAC organization, we would be happy to work with them to help plan modifications to the existing equipment in combination with the foam services you will hire us to do.  If you need an organization, we have providers that we trust who serve all corners of Chicago.  When doing these modifications, it is not good to deal with an HVAC contractor who uses old school rules of thumb for sizing equipment.  We will perform the needed blower door, look at the areas of opportunity to make the new smaller system serve you and your family better.  Over the decade that the Inflation Reduction Act is rolling out these incentives you can reduce your monthly expenditures, increase your comfort and know that the choices you made with Chicago Green Insulation were a critical part of that process.

45L Residential Tax Credit Incentives are available!

If you have made it this far, get ready to jump down the energy nerd rabbit hole!  45L tax credits are available to home owners/ builders who undertake new Construction or substantial renovations of their home and comply with the Department of Energy Zero Energy Ready Homes National Program.  Follow this link to see the 11 page Department of Energy guidance on Net Zero Ready Homes for steps to follow and incentives that you can receive.  If you would like our input, please call. If you are looking for a General Contractor to manage this project for you we are happy to give you names of contractors who can help.  If you need the names of architects who can help guide you, we can offer that referral also.  In short, The New Energy Efficient Home Credit provides up to $5,000 in tax credits for each new energy-efficient home (and up to $1,000 for each unit in a multi-family building). This credit incentivizes you to lower monthly energy costs for future owners and renters. As long as you meet the requirements of the DOE document, you can take advantage of this program.  Verification and third party review are critical to this incentive!

The Residential Clean Energy Credit

Additionally, The Residential Clean Energy Credit provides a 30 percent tax credit to lower the installation cost of residential clean energy, including rooftop solar, wind, geothermal, and battery storage. The Residential Clean Energy Credit offers more households access to and freedom to choose renewable energy that can lower monthly energy bills and cut air pollution from power plants.  When foam and solar are combined, you can take advantage of this incentive on the whole package, according to our conversations with local CPA’s in this field!  We are happy to provide referrals to a CPA if needed to discuss this further.


There are my understanding based on significant research on this very complex and moving process.  Rarely do people make decisions of this nature based on math.  If you are reading this far into this document, you may be that person.  If not, if you know someone please pass it on.  If you are trying to justify the expense to do what your home needs, my hope is this information will make it easier to get on our calendar and hire us to make your family more comfortable!

Comfort is only a FOAM CALL AWAY!  847-987-3626

Benefits of Spray Foam Insulation

  • Licensed by major spray foam manufacturers
  • Reduces heating and cooling costs by as much as 60%
  • Helps meeting the new Illinois Energy Efficiency building codes
  • Improves indoor air quality, gives you control over the air in your home/ business
  • Stops air infiltration – An average American home loses enough air each day to fill two Goodyear Blimps
  • Keeps dust and pollen out
  • Decreases noise pollution – amazing for people with who are sensitive to noise or vibrations
  • Adds strength to the building structure It is permanent and will not sag
  • Reduces capacity requirements, maintenance and wear of HVAC equipment
  • Closed Cell Spray Foam, in addition to all of the items above, also stops moisture infiltration

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