The Energy Efficient Home Improvement Tax Credit

To claim the tax credit for Aeroseal duct sealing, fill out IRS Form 5695, Residential Energy Credits, Part II, for the tax year the service was installed. Aeroseal qualifies under "insulation materials or air sealing systems", providing a 30% credit of total costs (labor included) up to a maximum of $1,200 annually. [1, 2, 3, 4]  

 

1. Obtain Documentation: Ensure you have an itemized invoice showing the Aeroseal installation date, cost, and a statement that it meets IECC standards (https://www.irs.gov/pub/irs-pdf/i5695.pdf). 

 

 

• Line 18a: Enter the total cost paid for the Aeroseal duct sealing. 

• Line 18b: Enter the smaller of line 18a or $1,200 (maximum annual credit). 

• Line 23: Total credit (combined with other energy-efficient improvements). 

• Line 30: Final credit amount, which is transferred to your Schedule 3 (Form 1040). 

 

3. Attach to Tax Return: File Form 5695 with your Form 1040 when you file your federal income taxes. [1, 2, 4, 5, 6, 7]  

 

* The home must be your existing principal residence (not new construction). 

* The 30% credit is part of the total $1,200 annual cap for all energy-efficient home improvements. 

* Keep your installer invoice and Manufacturer's Certification Statement (https://bayareaclimatecontrol.com/blog/heat-pump-tax-credit-form-5695-guide/) in your records. [3, 7, 8, 9]  

 

Disclaimer: Tax laws can change. Always consult a tax professional or the official  for the most current information.