Tax Credit on Insulation for Your House
- In 2011, you can get a tax credit for 10 percent of the cost of insulation, up to $500. The tax credit does not apply to the cost of installation. Unless Congress extends the credit, the insulation tax credit expires on Dec. 31, 2011.
- Bulk insulation products qualify for the credit. You can use batts, rolls, pour-in-place products, blown-in-fibers, rigid boards, or expanding sprays as eligible insulations. If products such as weather stripping, canned spray foam or caulking designed to seal air or house wrap come with a manufacturers certification statement qualifying them as energy-credit eligible, you also can get a tax credit for using them.
- You can only get a tax credit for insulation installed in an existing home, which must qualify as your principal residence. Tax laws define a principal residence as the home you own where you live most of the time. Installing insulation in new construction or rental property does not qualify for the credit.
- To qualify for the energy tax credit for insulation you installed in 2011, you must finish the project and be ready to use your home with the insulation completely installed by Dec. 31, 2011. To claim the credit, submit Form 5695 with your federal income tax return by April 15, 2012.
