Federal Tax Credit for Energy Efficiency – Insulation

A reminder that there is a Federal Tax Credits for Consumer Energy Efficiency on Qualifying Insulation. If you have been thinking about replacing these items, you might as well upgrade now and save some money. Improve the R-value of attic, wall, and crawl space insulation.

For 2011, the Federal Tax Credit for energy efficiency drops to 10%, up to a $500 maximum. (2010 Federal Tax Credit information)

• 10% up to $500 for insulation, roofs, and doors
• Existing home and principal residence.   New construction and rentals do not qualify.
• Expires December 31, 2011

Insulation must meet 2009 IECC & Amendments. Rebate does not cover installation/labor costs. Do it yourself-ers can also get the credit.

Typical bulk insulation products can qualify, such as batts, rolls, blow-in fibers, rigid boards, expanding spray, and pour-in-place.

Using blown fiberglass insulation is one of the best methods of energy efficiency for the home. Proper insulation using this keeps rooms tightly sealed, as compared to the old standard of fiberglass sheets, or batts. Spray foam is the fiberglass industry’s newest product that does not contain harmful chemicals. Though the cost of blowing fiberglass into wall cavities is 40% more than utilizing the traditional batts, using spray foam is  up to 50% cheaper. The overall energy savings of the home will offset the higher insulation costs over several years.

Weatherize your home. Products that air seal (reduce air leaks) can also qualify, as long as they come with a Manufacturers Certification Statement, including:

• Weather stripping
• Spray foam in a can, designed to air seal
• Caulk designed to air seal
• House wrap

Energy Star has a store location finder to help you find local dealers.

The 2011 tax credit reverted to  2005-2008 levels. Anyone who previously took advantage of the program can’t apply for incentives that exceed $500.  IE If you claimed $500 between 2005 – 2008 on a previous energy efficiency project, or at least $500 tax credit from 2009 – 2010, you are ineligible for the 2011 energy efficiency tax credit.

If you used say $200 of the $500 energy efficiency tax credit from 2005 – 2008, and did not utilize the 2009 – 2010 energy efficiency tax credit, you would still have a $300 credit available.

Federal Energy Efficiency Tax Credit on Qualifying biomass fuel stoves or Wood Heat Stoves, Pellet Stoves, Fireplace Inserts.  There is also a Federal Tax Credit for Energy Efficiency on Water Heaters, Wood Heat Stoves, Pellet Stoves, Furnaces and Boilers, Geo-Thermal Heat Pumps, Windows, Doors, and Skylights.

Double dip! Local utilities like PG&E have their own rebates for Energy Efficient Appliances. To find out if rebates or other incentives are available in your area, visit the ENERGY STAR Rebate Finder.

See: Weatherize your home – Fix Leaky Ducts – Reducing Air Leaks

Related posts:

1. Federal Tax Credit for Energy Efficiency on Windows, Doors, Skylights
2. Federal Tax Credit for Energy Efficiency on GeoThermal Heat Pump
3. Federal Tax Credit for Energy Efficiency on Heating, Furnaces, and Boilers
4. Federal Tax Credit for Energy Efficiency – Water Heaters
5. Federal Tax Credits for Energy Efficiency – Air Conditioning, HVAC
6. Federal Tax Credits for Energy Efficiency – Wood Stoves, Pellet Stoves, Fireplace Inserts
7. Residential Wind Power Federal Tax Credit for Consumer Energy Efficiency
8. Federal Energy Tax Credit 2010 – AMT Exclusion Lifted

Posted on January 14th, 2011
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