Federal Tax Credit on Insulation

A reminder that there is a 30% upto $1500 Federal Tax Credit 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.

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.

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.

This credit reduces the amount of tax you owe for 2009. The credit is a reduction of total income tax at the bottom of your return, up to $1500. This tax credit is a non-refundable tax credit. Consult your tax adviser for details. Use it or lose it!

Products must have been purchased between January 1, 2009 and December 31, 2010.  Solar water heater purchases are covered through 2016.

The tax credit is an aggregate, i.e., the total $1500 can include other energy efficient items. For instance, if a consumer claims $900 on a qualifying item, then they will have the remaining $600 rebate available for purchases of additional energy saving products in the same tax year.

$1500 seems like the total credit for both 2009 and 2010 combined.

Double dip: Many local utilities provide financial incentives for purchasing ENERGY STAR qualified windows, doors, and skylights. To find out if rebates or other incentives are available in your area, visit the ENERGY STAR Rebate Finder.

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Posted on November 28th, 2009
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