2011 Tax Credit for Insulation
On December 17, 2010, President Obama signed the Tax Relief, Unemployment Insurance Reauthorization, and Job Creation Act of 2010. This law extends the tax credits for energy efficiency into 2011, BUT at lower levels. The levels revert back to those in effect in 2006 and 2007, which were 10% of the cost of the improvement, up to $500, with a $200 max for windows, and several other set maximums.
Highlights:
- 10% up to $500 for insulation, roofs, and doors.
- Windows capped at $200, but qualification now ENERGY STAR
- Furnace and boilers capped at $150, and all furnaces and boilers must meet 95 AFUE
- $50 for advanced main air circulating fan
- $300 for air conditioners, air source heat pumps, water heaters, and biomass stoves
- $500 lifetime limit. If you got over $500 in these tax credits from 2006-2010, you are not eligible for anything more.
What is the energy efficiency tax credit worth?
For insulation products, 10% of cost up to $500 or a specific amount from $50 - $300
Which areas of my home should I insulate to be eligible for the tax credit?
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
See "2011 Federal Tax Credits for Consumer Energy Efficiency" for complete information.
Is there a specific time frame in which I need to make energy efficiency improvements in order to be eligible for the tax credit?
Consumers who want to take advantage of the Federal tax credits for their homes must install the products between January 1, 2011 and December 31, 2011.
Do I still get the tax credit if I hire a professional contractor to add insulation?
The IRS guidelines state that only the cost of the insulation products is eligible for the tax credit, and installation fees are not eligible.
What paperwork will I need to produce at tax time in order to be eligible for the tax credit?
Complete information on the paperwork required to claim the tax credit can be obtained from the IRS. Consumers will need to turn in an itemized retail proving the full amount spent on insulation materials within the eligible time period of January 1, 2011 through December 31, 2011. A Manufacturer’s Certification Document from the insulation manufacturer should also be filled out and turned in with the other documents.Download Convenience Products Insulation's Manufacturer's Certification.
Download IRS Tax Form 5695 (2011) Residential Energy Credit. (We will post as soon as it is available from the IRS.)
Note:
Convenience Products does not state or imply that each and every insulation installation job will qualify for a tax credit. Convenience Products does not warrant or guarantee a tax benefit will be awarded for each and every addition of insulation. Eligibility may vary by jurisdiction. Please carefully consult the Internal Revenue Service (http://www.irs.gov/) guidelines on how to qualify for the energy efficiency tax credit.
