Tax Credits for Insulation

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Published: January 09, 2013
By: Gil Rudawsky
3Comments
5 People Did It

Congress extended an energy tax credit for adding insulation through 2013.

Effort: Low 1 day (research)
Saves: High $600/yr (in Northeast)
Investment: Med $1,000-$2,500 (insulate attic)

Whether it’s summer heat or winter cold, insulation makes your house a lot more livable. And if you added insulation in 2012, or will in 2013, you may be eligible to collect a $500 energy tax credit.

Tax credit limits and deadlines:

10% of expenditures, up to $500 for the year, for all energy improvements combined. It’s a lifetime credit.

Insulation must have been installed by Dec. 31, 2013.

Save receipts and labels for Uncle Sam.

Be sure to file IRS Form 5695 with your return.

The Energy Star site is your safest bet for information on how to get the credit. Energy Star has been pretty flexible on what it allows for this credit:

Batts

Rolls

Blow-in fibers

Rigid boards

Expanding spray

Pour-in-place

Products that reduce air leaks also qualify:

Weather stripping (such as fabric, foam, or metal to provide a seal)

Spray foam in a can, designed to air seal

Caulk designed to air seal

House wrap

Installation isn’t covered.

Don’t rely solely on contractors who may not know the details or who promise their products will get the credit in order to make a sale.

Read on to learn more:

Insulation costs
Insulation is measured in R-values
Savings and energy audits

Next: Insulation costs

Gil Rudawsky

has covered business and consumer issues for 18 years, most recently as a deputy editor at the Rocky Mountain News. He lives in a house built in the 1930s, and always keeps the home’s character in mind when making upgrades.

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Track Your Progress

(3)

Douglas, you can claim eligible insulation improvements on line 21a of Form 5695. But before you do, consult the Energy Star site and your tax pro to determine if your insulation project is eligible (http://www.energystar.gov/index.cfm?c=tax_credits.tx_index). And remember the energy tax credit has a lifetime cap of $500, so if you claimed it in the past, you may be done.
Posted by HouseLogic on March 04, 2013

ok had installer put in blow in to attic and walls of my nome in 2012////where is there a place for insulation upgrades on form 5695?????the first 4 lines are other stuff....it cost me about 3000.00 r60 attic r20 in walls////plus foam back vynal siding too.......
Posted by DOUGLAS on March 04, 2013

I Did This!

Added insulation in ceilings
Posted by Jack on January 19, 2011 (Completed this on January 19, 2011)

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