If you have been thinking about adding a garage to your property in 2024, you have probably considered the project from a number of angles – what it will offer you in terms of performance, how much it will cost, and more. There is plenty to think about before you agree to move forward with the job.  

Taxes are another element to keep in mind. If there is a way for this kind of project to benefit you from a tax perspective, that would be yet another reason to get started on it right away. Let’s take a closer look at how a new garage might be a positive move for your overall tax picture.  

To make sure you are getting the best possible value on your new garage project, be sure to utilize the experience of American Steel Carports, Inc. on this job. You can even start right now by trying our Build & Price tool, or you can simply contact us to get more information.  

Taxes: Energy-Efficient Garage

The reason adding insulation to your garage might benefit you from a tax perspective in 2025 comes down to energy efficiency. The government has a number of programs in place to encourage both home and business owners to take steps to make their properties more energy efficient. That is something that insulation does well, of course, so many insulation purchases qualify for this kind of tax break.  

There is currently an energy efficiency tax credit in place for insulation purchases that is scheduled to last all the way until 2032. Under the current rules, you may be able to claim 30% of the cost of the insulation you purchase, for up to a $1,200 maximum allowed credit. So, for example, if you spent $2,000 on insulation, you may be able to claim $600 for that purchase, assuming you meet all of the other qualifications for the credit (more on that below). It’s also worth noting that this is just for the insulation portion of the efficiency tax credit – the overall credit is capped at $3,200 for the year, of which $1,200 can be insulation-related.  

Meeting the Right Tax Qualifications 

As always seems to be the case with anything related to taxes, there is plenty of fine print to pay attention to when pursuing this tax credit. For instance, you’ll need to make sure that the product or products you are purchasing are going to fit the definition of insulation. Fortunately, most bulk insulation products will qualify, including rolls, batts, blow-in fibers, and rigid boards. Expanding spray foam insulation should also qualify for the tax credit. Remember to confirm these points with a CPA before you move forward with your insulation plan, as getting a tax credit on the purchase might make it possible to get a higher-quality product while staying within your budget.  

Seeing the Bigger Picture 

It’s great to get a tax credit related to your purchase of new insulation for your garage, but is that going to be the only reason for buying insulation? Of course not – instead, you should see the tax credit as a nice bonus that makes the purchase more affordable and encourages you to get started on it right away.  

Once you have upgraded the insulation in your garage, you will immediately notice how much more comfortable you are when spending time in the space. On hot days, the garage will be a little cooler – and it will stay a little warmer on cold days. Evening out those dramatic swings up and down is a big benefit of insulation and will likely be one of your primary motivations for going ahead with the project in the first place.  

Additionally, you’ll also be creating better conditions for anything that you store in your garage. For example, electronic equipment doesn’t tend to fare well when stored in a hot space, so if you have some extra gear that you keep in the garage for later use, adding insulation will protect it and avoid damage over the long run.  

Talk to a Tax Professional About Your Custom Garage

You’ll have to review your personal tax situation – and likely talk to a tax professional – to make sure anything you do with a new garage in 2025 is going to impact your tax situation as you expect. Whatever the tax side of things happens to look like in the end, there is no doubt that adding an insulated garage to your property will continue to benefit you from a practical standpoint for many years ahead. 

Build a Custom Insulated Garage 

To learn more about building a custom insulated garage, contact American Steel Carports, Inc. Our experts can help you design the perfect garage and guide you through the process.