Is there a tax credit for insulation and home sealing products?

Is there a tax credit for insulation and home sealing products?

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Jacksonville       Duval County                 904-346-1266
St Augustine      St Johns County             904-824-7144
Orange Park       Clay County                   904-264-6444
Jacksonville Beaches    Duval County      904-246-3969
Fernandina          Nassau County               904-277-3040
Macclenny          Baker County                 904-259-5091
Palm Coast         Flagler County                386-439-5290
Daytona              Volusia County               386-253-4911

GAINESVILLE    ALACHUA COUNTY       352-335-8555
Serving all of Florida  and Georgia    at     904-346-1266

EMAIL LARRY@1STPROP.COM (feel free to email your bidding packages here)

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.

Source:

The law (Section 25C(c)(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.

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Recommended Levels of Insulation

Insulation level are specified by R-Value. R-Value is a measure of insulation’s ability to resist heat traveling through it. The higher the R-Value the better the thermal performance of the insulation. The table below shows what levels of insulation are cost-effective for different climates and locations in the home.

Recommended insulation levels for retrofitting existing wood-framed buildings

US map showing recommended insulation levels for retrofitting existing wood-framed buildings

Zone Add Insulation to Attic Floor
Uninsulated Attic Existing 3–4 Inches of Insulation
1 R30 to R49 R25 to R30 R13
2 R30 to R60 R25 to R38 R13 to R19
3 R30 to R60 R25 to R38 R19 to R25
4 R38 to R60 R38 R25 to R30
5 to 8 R49 to R60 R38 to R49 R25 to R30
Wall Insulation: Whenever exterior siding is removed on an

Uninsulated wood-frame wall:

  • Drill holes in the sheathing and blow insulation into the empty wall cavity before installing the new siding, and
  • Zones 3–4: Add R5 insulative wall sheathing beneath the new siding
  • Zones 5–8: Add R5 to R6 insulative wall sheathing beneath the new siding.

Insulated wood-frame wall:

  • For Zones 4 to 8: Add R5 insulative sheathing before installing the new siding.

Yes, you can install the eligible product yourself, you are not required to have a particular contractor do the install.

Many of the energy efficiency tax credits allow the cost of installation/labor to be included in the eligible amount (view this FAQ for details). However, if you install the product on your own, you can not claim a labor charge for the installation. There is no basis for which to charge the government for your time.

A Manufacturer’s Certification Statement is a signed statement from the manufacturer certifying that the product or component qualifies for the tax credit.

Manufacturers should provide these Certifications on their website. Call the manufacturer, or search their website. EPA does not have copies of the Manufacturer’s Certification Statement.

Taxpayers must keep a copy of the certification statement for their records, but do not have to submit a copy with their tax return.

Which components associated with my product are also eligible for the tax credit?
Question
I’m buying a new product that qualifies for the tax credit. How do I know which components associated with it are also eligible for the credit? For example, for a qualified roof, would the nuts & bolts, and gutter be included? For a biomass stove, would the hearth, stovepipe, and chimney be included?
Answer

IRS has not issued specific written guidance on this question.

The rule of thumb that has become informal IRS guidance is that if the component is a critical piece of the product’s energy efficiency then it is covered, but if it’s the same component that you would use on a non-qualified product (a regular roof), then it would not be covered.

The following products are probably not covered by the tax credit:

  • nuts & bolts, and gutter for a new roof
  • hearth, stovepipe or chimney for a biomass stove
  • new ducts for an air conditioner or furnace

You can also contact the IRS directly: www.irs.gov/contact

What is SEER? EER? HSPF?
Question

What is SEER? EER? HSPF?

Answer
Seasonal Energy Efficiency Ratio (SEER), is most commonly used to measure the efficiency of a central air conditioner. The higher the SEER, the more efficient the system. SEER measures how efficiently a cooling system will operate over an entire season.

  • In technical terms, SEER is a measure of equipment the total cooling of a central air conditioner or heat pump (in Btu) during the normal cooling season as compared to the total electric energy input (in watt-hours) consumed during the same period

Energy Efficiency Ratio (EER) is a measure of how efficiently a cooling system will operate when the outdoor temperature is at a specific level (95oF). The higher the EER, the more efficient the system.

  • In technical terms, EER is the steady-state rate of heat energy removal (i.e. cooling capacity) by the product measured in Btuh divided by the steady-state rate of energy input to the product measured in watts. This ratio is expressed in Btuh/watt.

Both SEER and EER are included in the ENERGY STAR specification because each rating indicates the energy efficiency of the product under different operating modes. SEER rating more accurately reflects overall system efficiency on a seasonal basis and EER reflects the system’s energy efficiency at peak day operations. Both ratings are important when choosing a product.

Heat Seasonal Performance Factor (HSPF) is the most commonly used measure of a heat pumps heating efficiency. The higher the HSPF, the more efficient the heat pump.

  • In technical term, HSPF represents the total heating output of a heat pump (including supplementary electric heat) during the normal heating season (in Btu) as compared to the total electricity consumed (in watt-hours) during the same period. HSPF is based on tests performed in accordance with AHRI 210/240 (formerly ARI Standard 210/240)1.

More information on ENERGY STAR qualified Central Air Conditioners and Air Source Heat Pumps.

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FREE ESTIMATES

Jacksonville       Duval County                 904-346-1266
St Augustine      St Johns County             904-824-7144
Orange Park       Clay County                   904-264-6444
Jacksonville Beaches    Duval County      904-246-3969
Fernandina          Nassau County               904-277-3040
Macclenny          Baker County                 904-259-5091
Palm Coast         Flagler County                386-439-5290
Daytona              Volusia County               386-253-4911

GAINESVILLE    ALACHUA COUNTY       352-335-8555
Serving all of Florida  and Georgia    at     904-346-1266

EMAIL LARRY@1STPROP.COM (feel free to email your bidding packages here)

other websites we recommend you look at

www.asap-plumbing.com

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