Federal Tax Credit Info for AttiCat® Dealers’ Clients
The Federal Tax Credit that can be used for re-insulation jobs in existing homes is back. This will be a great selling tool when talking with your homeowners about attic insulation. The credit applies to insulation installed between Jan 1, 2009 - Dec 31, 2009. Please see detailed information below:
Existing Home Insulation - Federal Tax Credit
On Oct. 3, 2008, the President signed into law legislation to extend many of the energy efficiency tax incentives that were first enacted in 2005 but expired at the end of 2007 or were scheduled to expire at the end of 2008. The energy efficiency provisions most important to residential insulation contractors include:
- Existing Homes & Re-Insulation/Attics: An extension of the 30% tax credit ($1,500 maximum per homeowner for all improvements combined) — applicable to insulation added to existing homes (covering improvements installed in 2009 & 2010, but not 2008).
- New Homes: An extension of the $2000 energy-efficient new home tax credit, to the end of 2010.
NOTE: This is not tax advice. Always consult a tax professional.
Existing Homes Tax Credit & Insulation
- Time Period: The eligible insulation must be "placed into service" between Jan 1, 2009 - Dec 31, 2010.
- Credit Limits: the homeowner can take a tax credit equal to 30% of the cost of insulation installed in their home, with a $1,500 maximum cap, which includes all energy efficiency improvements made to the home.
- Qualifying Insulation: For insulation to qualify, its primary purpose must be to insulate.
- Material Costs Only: Though the initial legislation does not stipulate this, the IRS rules implementing this portion of the tax credit specifies that installation costs are not included when determining the total costs of the insulation job.
- What’s Needed from the Manufacturer: A Manufacturer's Certification Statement, indicating that insulation is indeed eligible, is required.
- What the Homeowner Needs: A homeowner (tax payer) does NOT have to submit receipts or the manufacturer’s certification to the IRS. The homeowner simply has to 1) save their receipt/bill for the insulation and the Manufacturer's Certification Statement along with their other tax records, and 2) complete and submit IRS Form 5695 when filing their taxes for 2009.
What You or Your Customer Needs
Other Resources Available
- NAIMA: Homeowners have more questions? You can also refer to the NAIMA document on the Tax Credit (more info also available at NAIMA's website)
- Energy Star's Tax Credits for Consumers Information Web Page
- Looking for additional utility rebates/ incentives to offer homeowners in your area/ state? Visit the Database of State Incentives for Renewables & Efficiency and search by state for applicable rebates and incentives in your area.
