Adding adequate insulation is one of the most cost-effective home improvements that you can do. You can get a tax credit worth 30% of the cost (not including installation/labor costs), up to $1,500. To qualify, you the insulation must be installed in your “principal residence” between January 1, 2009 and December 31, 2010.
Requirements
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 ( click here to download ), including:
- Weather stripping
- Spray foam in a can, designed to air seal
- Caulk designed to air seal
- House wrap
To claim the tax credit for insulation installed in 2009, you will need to file the 2009 IRS Form 5695 and submit it with your 2009 taxes (by April 15, 2010). For insulation installed in 2010, you would take the tax credit on your 2010 taxes.
Is there a tax credit for windows?
Yes, as long as the window, in combination with the exterior window over which it is installed-
(a) Has a U-factor and SHGC of 0.30 or below; and
(b) Meets the prescriptive criteria for such component established by the IECC.
You can learn more about the Tax Credit at the Energy Star website.