Insulation tax credit
How does it work?
Many people looking to add insulation to their homes will be pleased to know that they can recieve tax credits up to a value of $1,500 or %30 of the total value. The tax credit will be given to those who upgrade their homes with energy efficient improvements, such as insulation. For example, if you purchase $1,200 worth of qualified insulation, you will be eligible to recieve $400 in Federal tax credit. This newly appointed incentive has risen since the last tax credit of $500 or 10% of the total value.
Is there a minimum amount of insulation required to recieve tax credit?
In order to recieve your tax credit, you must first meet the requirements set forth by the maerican Recovery and Reinvestment Act of 2009. In other words, your insulation type and the amount you use must abide to certain limitations set forth by the aformentioned law. Certain states require certain R-values for the insulation and your levels should meet the requirements to qualify for the tax credits. The most common requirement, spread across states, is making sure the new insulation adds at least an R-value of 19-30.
Are there time constraints that may effect my ability to get a tax credit?
Homeowners looking to take advantage of the tax credits available must take action and install their products between January 1, 2009 - December 31, 2010.
Will my insulation installation be covered under the tax credit?
Unfortunately, the answer is no. While the cost of the insulation is eligible for tax credit, the installation is not accounted for what-so-ever. Don't let this desuade you from hiring a professional installer, such as United Air Care. There are still many decent reasons to use an installation service. For example, if you install loose-fill insulation, you need someone to prep the area and pour in the product. If you do get professional installation, be sure to keep your receipt and showcase the cost of the insulation material.
What about the paperwork?
Paperwork necessary to file a tax credit may be obtained by the Internal Revenue Service (IRS). You must first obtain a receipt showcasing the full price of the insulation, not installation, and then give that to the IRS. You will also be required to fill out and turn in a manufacturer's certification document from the insulation manufacturer. If you followed all guidelines, including the time restriction, you will be deemed eligible and recieve the paperwork promptly.
| $0.15/sq. ft. | Attic Insulation. Existing insulation must be R-11 or less. The final insulation level must be R-30, or R-19 if there is less than 24 inches of attic clearance. |
Southern California Gas Company (SoCalGas) |
| $0.15/sq. ft. | Wall Insulation. Qualifying insulation must be installed in non-insulated walls. The installed insulation must achieve a minimum of R-13. |
Southern California Gas Company (SoCalGas) |
| $0.15/sq. ft. | Attic Insulation. Attic insulation is eligible for an incentive only if 1) The Pre-retrofit insulation level is R- 11 or less and 2) there is at least 24" of clearance between top of ceiling joist and bottom of ridge board. In addition, the final insulation level must be at least R- 30, unless a higher level is specified by local jurisdiction. |
Southern California Gas Company (SoCalGas) |
| $0.15/sq. ft. | Wall Insulation. Wall insulation is eligible for an incentive as long as existing walls are not insulated and are between conditioned living area and unconditioned area. The installed insulation must achieve a minimum of R-13. |
Southern California Gas Company (SoCalGas) |
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30% of total, up to $1,500 |
Insulation Replacement (must meet 2009 IECC & Amendments). |
US Department of Energy |