Monday, December 13, 2010

Save money by becoming energy efficient and get tax credits

Energy energy efficent tax credit program

Insulation Facts from

Yes, insulation and home sealing products can qualify for a tax credit.

How much: 30% of the cost (not including installation/labor costs), up to $1,500
Timing: Tax credit in effect in 2009 and 2010. Must be installed in your "principal residence" between January 1, 2009 and December 31, 2010.
Details: 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

You can install the insulation/home sealing yourself and get the credit.

Recommended insulation levels (R Values) for your home.

Find qualified insulation: For insulation to qualify, its primary purpose must be to insulate (example: insulated siding does not qualify). It must also have a Manufacturer's Certification Statement to qualify.
How to apply: 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.


The law (Section 25C©(2)(A)) specifies: … any insulation material or system which is specifically and primarily designed to reduce the heat loss or gain of a dwelling unit when installed in or on such dwelling unit, and meets the prescriptive criteria for such material or system established by the 2009 International Energy Conservation Code, as such Code (including supplements) is in effect on the date of the enactment of the American Recovery and Reinvestment Tax Act of 2009,

The IRS (Notice 2009–53) specifics: (a) An insulation material or system (including any vapor retarder or seal to limit infiltration) that–(i) Is specifically and primarily designed (within the meaning of section 4.03 of this notice) to reduce heat loss or gain of a dwelling unit when installed in or on the dwelling unit; and(ii) May be taken into account in determining whether the building thermal envelope requirements established by the International Energy Conservation Code (IECC) are satisfied.

Contact Info

Smart Home Products of Tennessee

  • Phone: (865) 233-3841
  • Fax: (865) 233-3842
  • Showroom/Office: 3309 Regal Drive, Alcoa, TN 37701