Insulation Tax Credit

The American Recovery and Reinvestment Act of 2009 has made it possible for you to receive an insulation tax credit of up to $1500.00 if you take certain steps to make your home more energy efficient.

So, not only will you get a nice credit for your upgrades, you'll save additional money each month with reduced energy costs.

Here are the specifics of the Act, according to the U.S. Department of Energy:

"Consumers who purchase and install specific products, such as energy-efficient windows, insulation, doors, roofs, and heating and cooling equipment in existing homes can receive a tax credit for 30% of the cost, up to $1,500, for improvements "placed in service" starting January 1, 2009, through December 31, 2010. See EnergyStar.gov for a complete summary of energy efficiency tax credits available to consumers."

Product Type	Tax Credit Specification	Tax Credit Amount	Notes
Insulation	Meets 2009 IECC and Amendments	30% of cost, up to $1,500 maximum per homeowner for all improvements combined	For insulation to qualify, its primary purpose must be to insulate (example: insulated siding does not qualify). Must be expected to last 5 years OR have a 2 year warranty

Improvements made in 2009 can be claimed on your 2009 taxes using IRS Tax Form 5695 (2009 version). The insulation tax credit is valid for existing homes only.

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