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Question

Is there a tax credit for insulation?

 

Answer

 

Yes, insulation can qualify for a tax credit of 30% of the cost (not including installation/labor costs), up to $1,500 in 2009 and 2010.

Typical bulk insulation products can qualify, such as batts, rolls, blow-in fibers, rigid boards, expanding spray, and pour-in-place. They must come with a Manufacturers Certification Statement to qualify.

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

Recommended insulation levels (R Values) for your home.

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Source:

The law (Section 25C) specifies: … any insulation material or system which is specifically and primarily designed to reduce the heat loss or gain of a dwelling unit when installed in or on such dwelling unit, and meets the prescriptive criteria for such material or system established by the 2009 International Energy Conservation Code, as such Code (including supplements) is in effect on the date of the enactment of the American Recovery and Reinvestment Tax Act of 2009,

The IRS (Notice 2009-53) specifics: (a) An insulation material or system (including any vapor retarder or seal to limit infiltration) that--(i) Is specifically and primarily designed (within the meaning of section 4.03 of this notice) to reduce heat loss or gain of a dwelling unit when installed in or on the dwelling unit; and(ii) May be taken into account in determining whether the building thermal envelope requirements established by the International Energy Conservation Code (IECC) are satisfied.

 


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