Federal Tax Credit Info for AttiCat® Dealers’ Clients
The Federal Tax Credit that can be used for re-insulation jobs in existing homes is still in effect. This is a great selling tool when talking with your homeowners about attic insulation. The credit applies to insulation installed between Jan 1, 2009 - Dec 31, 2011. Please see detailed information below:
2011 Federal Tax Credit for Consumer Energy Efficiency
NOTE: Tax credits that were 30% up to $1,500 EXPIRED on December 31, 2010. New tax credits were passed, but at lower levels.
Existing Homes Tax Credit & Insulation
- Time Period: The eligible insulation must be "placed into service" between Jan 1, 2010 - Dec 31, 2011.
- Credit Limits: the homeowner can take a tax credit equal to 10% of the cost of insulation installed in their home, with a $500 maximum cap, or a specific amount from $50-$300.
- 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.
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.
