Congress has just approved the 2009 economic stimulus bill ("The American Recovery and Reinvestment Act") which includes an extension and expansion of the existing federal tax credit for installed insulation. The federal tax credit for installing insulation in 2009 is 30% (previously 10%) of the purchase price up to a $1500 tax credit for 2009. A consumer can save as much as $1500 from the purchase price when adding insulation to their existing home.

 

How it works:

* Must be "placed in service" from January 1, 2009 through December 31, 2010
* Must be for taxpayer's principal residence
* $1,500 is the maximum total amount that can be claimed for all products placed in service in 2009 & 2010
* Must have a Manufacturer Certification Statement to qualify
* Save your receipts & our Manufacturer Certification Statement, which you can download here

* Improvements made in 2009 will be claimed on your 2009 taxes (filed by April 15, 2010)

* See the Instructions attached to 2008 IRS Form 5695 to help you further with this provision.

 

 

Other Incentives:

 

Financial incentives for the purchase and installation of insulation are also available, in addition to securing federal incentives, from selected state and local governments, and utilities.

 

Energy and Green Retrofit Investments. The legislation also provides funds to upgrade HUD-sponsored low-income housing to increase energy efficiency including new insulation.

 

Weatherization Assistance Program. The legislation also provides a massive injection of funds for weatherization assistance which includes insulation upgrades for eligible households.