Is there a tax credit for insulation and home sealing products?

The tax credit for insulation and home sealing products is in effect through December 31, 2013.

How much:

10% of the cost (not including installation/labor costs), up to $500

 

Timing:

Must be installed in your "principal residence" between January 1, 2011 and December 31, 2013.

Details:

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

You can install the insulation/home sealing yourself and get the credit.

Recommended insulation levels (R Values) for your home.

Find qualified insulation:

For insulation to qualify, its primary purpose must be to insulate (example: insulated siding does not qualify). It must also have a Manufacturer's Certification Statement to qualify.

 

How to apply:

File the 2012 IRS Form 5695 ) and submit it with your 2012 taxes (by April 15, 2013). 

Source:

The law (Section 25C(c)(2)(A)) 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. 

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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Topic Information
  • Topic #: 23002-19327
  • Date Created: 8/14/2009
  • Last Modified Since: 1/28/2013
  • Viewed: 37383
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