Install EPS Insulation and Get a Tax Credit

(guest post by Betsy Bowers)

You may not know it, but expanded polystyrene (EPS) insulation can save you money on your taxes. As Tax Day approaches this April 15th, we wanted to highlight how homeowners can take advantage of this tax credit, lower their utility bills, and make a significant impact on the environment too.

When you choose to upgrade your home’s insulation, you can qualify for up to $1,200 in an Energy Efficient Home Improvement Credit, thanks to the Inflation Reduction Act.

That credit is in addition to the average $1,000 savings off yearly utility bills, because improved insulation means a more efficient home as well as fewer greenhouse gas emissions associated with heating and cooling. Choosing select materials, like EPS rigid foam insulation, helps to manage the passage of heat within a building system.

But more significantly, there is no lifetime dollar limit. You can claim the maximum annual credit every year that you make eligible improvements until 2033. This can also apply to an additional $2,000 per year for qualified heat pumps, biomass stoves, or biomass boilers.

EPS is an ideal insulation choice with proven performance. It delivers measurable advantages in energy efficiency, indoor environmental quality, and durability. It is used in roofing; below-grade applications; floors, walls, and ceilings.

Here are some installation tips:

Before beginning the installation, it is important to select which type of EPS insulation is appropriate. Boards and panels are typically used for walls, floors, and roofs. Custom molded products are sometimes used for specific applications, such as radiant floor heating systems.

After determining the type of EPS insulation you want to use, carefully measure the area to be insulated. Ensure compliance with local building codes for insulation. The surface should be clean, dry, and free from any debris or substances that could impair the insulation’s effectiveness.

When installing the insulation, make sure to use a sharp knife or a saw specifically designed for cutting EPS to ensure clean, straight cuts. Measure twice and cut once.

EPS boards should fit snugly between framing members without large gaps. Trim as necessary for a nice, tight fit. Use compatible adhesives, mechanical fasteners (like screws with washers), or both, to secure the EPS. Ensure that the insulation is securely attached to prevent shifting or gaps.

Then, make sure to seal any small gaps between EPS boards and around windows, doors, and other penetrations to maintain energy efficiency.

When installing multiple layers of EPS, overlap the seams between layers to reduce thermal bridging.

When installing EPS insulation, make sure to wear protective clothing, gloves, and safety glasses. Ensure good ventilation when using adhesives or sealants, which may emit fumes.

For more complex projects, consider hiring a professional to make sure that the installation complies with applicable codes and standards.

After installation, EPS should be covered with a protective barrier, such as drywall inside or weather-resistant material outside, to protect it from UV light and physical damage. Inspect the insulation to ensure there are no gaps or areas where the EPS is not properly secured.

You’re done!

Regularly check the insulation for any signs of damage or degradation over time. EPS is a durable material, but it can be damaged if not properly protected.

Make sure to follow these steps and then claim your tax credit! Save money, and the planet while you’re at it.

About the author: Betsy Bowers is the Executive Director of the Expanded Polystyrene Industry Alliance (EPS-IA), the North American trade association for the expanded polystyrene (EPS) industry.