Tax Credit Fact Sheet - CertainTeed

Tax Credits for InsulationFederal Tax Credits Available for AddingInsulation to Existing HomesWhat is the energy efficiencytax credit worth?Homeowners are eligible for a taxcredit of up to $1,500 for 30% of thecosts of qualified energy efficiencyimprovements made to their homes.So, if a homeowner spends $800 toadd proper levels of insulation totheir home, they could qualify for aFederal tax credit of $240.How much insulation do I needin my home to meet the levelsrequired for the Tax Credit?The legislation requires theprescriptive path insulation levelsof the 2009 International EnergyConservation Code (IECC). Pleasesee the table below for R-valuerequirements by climate zone.These levels should meet thecriteria for the Federal tax credit.For most homeowners, this willmean adding between R-19 and R-30 insulation in their attics.Which areas of my homeshould I insulate to be eligiblefor the tax credit?The tax credit applies only toimprovements made to the buildingenvelope because they affect energyuse.The envelope is defined as thearea along the perimeter of thehome that separates the living spacefrom the outside.This includesattics, foundation and exterior walls,basements and crawl spaces.2009 IECC Insulation Levels (R-Values)www.naima.orgMinimum R-valuesZone 1 2 34 (exceptMarine)5 &Marine 4 6 7 & 8Attic/Ceiling 30 30 30 38 38 49 4921Walls 13 13 13 13 20 cavity or13 cavity +5 sheathing20 cavity or13 cavity +5 sheathingFloors 13 13 19 19 30 30 30BasementWalls- - 13 cavityor 5cont.13 cavity or10 cont.13 cavityor 10 cont.19 cavityor 15 cont.19 cavityor 15cont.Cavity R-values are the required R-value of insulation materials when installed between the wall studs or floor joists.Continuous R-values are the required R-value of insulation materials that cover the entire wall assembly.For information on your specific climate zone, go to:http://www.energystar.gov/index.cfm?fuseaction=windows_doors.search_climate

Is there a specific time framein which I need to makeenergy efficiencyimprovements in order to beeligible for the tax credit?Consumers who want to takeadvantage of the Federal tax creditsfor their homes must install theproducts between January 1, 2009and December 31, 2010.How do I get a tax credit forinsulation?The tax credit for existing homesrequires that the building envelopecomponent being renovated mustmeet the energy efficiency minimumstandards outlined in the prescriptivepath of the 2009 InternationalEnergy Conservation Code (IECC).The envelope is defined as the areaalong the perimeter of the home thatseparates the living space from theoutside.This includes attics,foundationand exterior walls,basementsand crawl spaces. Insulation is a keycomponent of the home or buildingenvelope. Other qualified envelopecomponents include windows,doors,skylights and air duct sealing.EPA’s Seal and Insulate with ENERGYSTAR program offers consumersadvice on how to improve theenergy efficiency of their homes.Adding fiber glass or mineral woolinsulation is one of the fastest andmost effective ways to save energy inyour home. Insulation and homesealing can save up to 20% on energyuse according to the U.S.EPA.Savings vary. Find out why in theseller’s fact sheet on R-values.HigherR-values mean greater insulatingpower. This is an investment thatkeeps paying off with better comfortand energy savings for as long as youown your home.For more specific informationon EPA’s Seal and Insulate withENERGY STAR program and adviceon federal tax credits for improvinghome energy efficiency, go towww.energystar.gov.Do I still get the tax credit ifI hire a professionalcontractor to add insulation?The IRS guidance states that onlythe cost of the insulation productsis eligible for the tax credit, andinstallation fees are not eligible.That said, there are many goodreasons to hire a contractor, such asinstallation of loose-fill insulation, toensure proper installation and ifyou do not have the skills orinterest to do the job yourself. Makesure the contractor gives you anitemized receipt that breaks out thecost of the insulation from thelabor charge.What paperwork will I needto produce at tax time inorder to be eligible for thetax credit?Check with the IRS for completeinformation. Generally, an itemizedretail or contractor receipt showingthe amount spent on insulationmaterials between January 1, 2009and December 31, 2010, along witha certification document from theinsulation manufacturer shouldmeet the requirements.For More Information, visitwww.SimplyInsulate.comNAIMA does not state or imply that each andevery insulation installation job will qualify for atax credit. NAIMA does not warrant orguarantee a tax benefit will be awarded for eachand every addition of insulation. Eligibility mayvary by jurisdiction. Please carefully consult theInternal Revenue Service (www.IRS.gov)guidelines on how to qualify for the energyefficiency tax credit. NAIMA does not provideprofessional tax counseling.Do you want to lower yourenergy usage and increasecomfort? Log on toSimplyInsulate.com forinformation on insulationbasics, installation tips,federal, state & localenergy efficiency financialincentives and more!ABOUT NAIMANAIMA is the association for North Americanmanufacturers of fiber glass, rock wool, and slagwool insulation products. Its role is to promoteenergy efficiency and environmental preservationthrough the use of fiber glass, rock wool, andslag wool insulation, and to encourage the safeproduction and use of these materials.For more information, contact:NAIMA44 Canal Center Plaza, Suite 310Alexandria, VA 22314Phone: 703-684-0084Fax: 703-684-0427www.naima.orgNAIMA RESIDENTIAL AND COMMERCIALINSULATION COMMITTEE MEMBERS:CertainTeed Corporationwww.certainteed.comJohns Manvillewww.jm.comKnauf Insulationwww.knaufinsulation.usOwens Corningwww.owenscorning.comRoxul Inc.www.roxul.comPrinted on Recycled PaperPUB. NO. BI490 3/09