Federal Tax Credits Available for Adding Insulation to Existing
Homes
What is the energy efficiency tax credit worth?
Home owners are eligible for a tax credit of
up to $1,500 for 30% of the costs of qualified energy efficiency
improvements made to their homes. Therefore, if a homeowner
spends $1,000 on new qualifying insulation, they are eligible for a
$300 Federal tax credit. This is a more generous credit than
the previous tax credit of up to $500 for 10% of the
costs.
How much insulation do I need in my home to meet the levels
required for the tax credit?
To qualify for the tax credit, insulation
levels must meet the requirements of the American Recovery and
Reinvestment Act of 2009. Refer to the map below for state-by-state
R-value recommendations. These levels should meet the
criteria for the Federal tax credit. For the majority of
homeowners, this will mean adding between R-19 and R-30 insulation
in their attics.
Which areas of my home should I insulate to be eligible for the
tax credit?
Recommended Insulation Levels (R-Values)
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The tax credit applies only to improvements
made to the building envelope since that affects energy use.
The envelope is defined as the area along the perimeter of the home
that separates the living space from the outside. This
includes attics, foundation and exterior walls, basements and crawl
spaces.
Is there a specific time frame in which I need to make energy
efficiency improvements in order to be eligible for the tax
credit?
Consumers who want to take advantage of the Federal tax credits
for their homes must install the products between January 1, 2009
and December 31, 2010.
Do I still get the tax credit if I hire a professional
contractor to add insulation?
The IRS guidelines state that only the cost of
the insulation products is eligible for the tax credit, and
installation fees are not eligible. However, there are still
many good reasons to hire a contractor, such as installation of
loose-fill insulation, to ensure proper and safe installation, and
if one does not have the skills to perform the job
themselves. It is important to make sure an itemized receipt
containing only the costs of the insulation materials is obtained
from the contractor, as labor charges will not be eligible for the
credit.
What paperwork will I need to produce at tax time in order to
be eligible for the tax credit?
Complete information on the paperwork required
to claim the tax credit can be obtained from the IRS.
Consumers will need to turn in an itemized retail or contractor
receipt clearing proving the full amount spent on insulation
materials within the eligible time period of January 1, 2009
through December 31, 2010. A Manufacturer’s Certification
Document from the insulation manufacturer should also be filled out
and turned in with the other documents.
Note:
Knauf Insulation does not state or imply that each and every
insulation installation job will qualify for a tax
credit. Knauf Insulation does not warrant or guarantee a
tax benefit will be awarded for each and every addition of
insulation. Eligibility may vary by jurisdiction. Please carefully
consult the Internal Revenue Service (http://www.irs.gov/) guidelines on how to
qualify for the energy efficiency tax credit.