Energy Efficiency Tax Credits Issues... What is the energy efficiency tax credit worth? What energy efficiency improvements are eligible for the tax credit? What areas of my home are considered the house envelope? Do the improvements have to meet any specific requirements? Energy Conservation Code (IECC) and the 2004 Supplement to the 2003 IECC? How much insulation do I need in my home to meet the levels required for the tax credit? How do I know how much insulation I already have? If I am adding more insulation to my home, do I need to remove what I already have? Is there a specific time frame in which I need to make energy efficiency improvements in order to be eligible for the tax credit? Do I still get the tax credit if I hire a professional contractor to add insulation? Where can I find an insulation contractor? What paperwork will I need to produce at tax time in order to be eligible for the tax credit? Can I only take the credit once between January 1, 2009 and December 31, 2010? Do I need to add insulation all over my house to qualify? Do I need to do an energy audit or a post-insulation inspection? Do caulk and weather-stripping qualify for the tax credit? Do appliances qualify for the tax credit? I’m buying a new home that is energy efficient. Does that qualify for the tax credit? Can I only use some kinds of insulation to get the tax credit? If I add insulation to interior walls of my home for sound control, am I still eligible for the tax credit?		General Issues... What does insulation actually do for my home? What is R-Value? What areas of my home should be insulated? How do I know how much insulation I need for my home? If I am adding more insulation to my home do I need to remove what I already have? Can a home be "too tight"? Do I need to replace my building insulation if it gets wet? Hiring an Insulation Contractor... Where do I find an insulation contractor? What should I look for in a qualified insulation contractor? Purchasing Insulation... Are there rebates available for installing insulation? What types of fiber glass insulation are available? Where do I find R-value information when I go to buy insulation? What is the difference between a thermal fiber glass batt and an acoustic fiber glass batt? What are the differences (pros and cons) between fiber glass and cellulose insulation? If I choose to install insulation myself, where should I buy my insulation? Does fiber glass insulation contain any recycled materials? Doing It Yourself... What tools do I need to install insulation? What kind of protective gear should I wear when installing insulation? Are there any general installation tips for installing fiber glass insulation? Which side do I install the vapor retarder on?

Questions about terminology?

Energy Efficiency Tax Credit For Existing Homes

What is the energy efficiency tax credit worth?*

The tax credit for existing homes requires that the building envelope component being renovated must meet the energy efficiency minimum standards outlined in the 2009 International Energy Conservation Code. Insulation is a key component of the home or building envelope.  EPA’s ENERGY STAR Home Sealing Program offers consumers advice on how to improve their building envelope. Adding insulation is one of the fastest and most effective ways to save energy in your home.

What areas of my home are considered the house envelope?

The envelope is defined as the area along the perimeter of the home that separates the living space from the outside. This includes attics/ceilings, walls, basements and crawlspaces. Click here for a graphic of the building envelope.

Do the improvements have to meet any specific requirements?*

Improvements to the home or building envelope must meet the 2009 International Energy Conservation Code (IECC).

How much insulation do I need in my home to meet the levels required for the tax credit?*

The amount of insulation in a home varies depending upon where you live. Tthe levels of insulation required under the 2009 International Energy Conservation Code (IECC).  Click here for a state by state map showing NAIMA's recommended R-value in your area.

How do I know how much insulation I already have?

Look for an R-value printed on the facing of fiber glass and mineral wool batts. If you have an unfaced batt or any type of loose fill insulation, use a ruler to measure the amount of insulation currently installed.  If you have six inches or less, you probably need more. In most homes, adding an insulation layer of R-19 to R-30 should help achieve the levels recommended for optimal comfort and savings, and qualify for the Federal tax credit. For more information on determining your existing levels of insulation, click here.

If I am adding more insulation to my home, do I need to remove what I already have?

No, R-values are cumulative. For example, two layers of R-19 batts will give you a total of R-38. Consider using unfaced R-19, R-25 or R-30 fiber glass or mineral wool batts and laying them cross-wise to the existing insulation covering the joists. If there is no insulation in your attic, use R-38 or R-49 full width, faced batts, or fiber glass or mineral wool loose fill insulation to reach the appropriate R-value for your area. Click here for a state by state map showing NAIMA's recommended R-value in your area.

Is there a specific time frame in which I need to make energy efficiency improvements in order to be eligible for the tax credit?*

The IRS guidelines state that consumers who want to take advantage of the Federal tax breaks for their homes must install the products between January 1, 2009 and Dec. 31, 2010.

Do I still get the tax credit if I hire a professional contractor to add insulation?*

Yes, however, the IRS guidance states that the tax credit is based on 30% of the cost of the energy efficiency product, not the installation. Make sure that the contractor gives you an itemized receipt that breaks out the cost of the insulation from the labor charge. The contractor will also need to provide you with information on the product used and its manufacturer so that you may get a manufacturer’s certification statement from the manufacturer’s website. The contractor may also provide you with a copy of the manufacturer’s certification statement. Click here for links to the manufacturer’s certification statements from NAIMA members.

Where can I find an insulation contractor?

You can begin by checking the Yellow Pages. Or, call your utility company. Many utility companies maintain a list of recommended contractors. You can also check with local home builder associations or the Insulation Contractor Association of America (www.insulate.org) for contractors that service your area. Click here for a list of NAIMA members and their web sites where you will also find lists of insulation contractors in your area. For more information about finding and hiring an insulation contractor, click here.

What paperwork will I need to produce at tax time in order to be eligible for the tax credit?*

The IRS guidelines state that you will need to retain any retail or contractor receipts from the purchase of energy efficiency products made between Jan. 1, 2009 and Dec. 31, 2010. You will also need a manufacturer’s certification statement, which you should be able to download from the manufacturer’s website. Click here for links to the manufacturer’s certification statements from NAIMA members. Click here for the IRS Instructions on Existing Homes Tax Credit included in Estimated Tax Form

Can I only take the credit once between January 1, 2009 and December 31, 2010?*

The IRS guidelines state that you can take the credit in both years if you made separate qualifying purchases for a total maximum credit of $1,500. For instance, if you upgrade your insulation in 2009 and your windows in 2010, you can take the allowed tax credit in both years not to exceed the maximum allowed credit of $1,500.

Do I need to add insulation all over my house to qualify?*

The IRS guidelines state that homeowners must bring the specific component being improved to the levels required by the 2009 International Energy Conservation Code. So, if you choose only to add insulation to your attic, you just have to meet the levels of insulation required by the 2009 IECC for attics.

Do I need to do an energy audit or a post-insulation inspection?*

The IRS guidelines do not require an inspection or audit for the existing homes tax credit. However, energy audits can be useful tools to help you assess the best places to add insulation in your home. Click here to find a qualified energy rater in your area.

Do caulk and weather-stripping qualify for the tax credit?*

These products are not covered by the 2009 International Energy Conservation Code and therefore do not qualify for the credit. That said, coupling home sealing techniques, like caulk and weather-stripping with insulation can help achieve increased energy savings and better comfort. These are low cost, easy do-it-yourself jobs that can further increase the value of adding proper levels of insulation. Visit www.energystar.gov for information on the Energy Star Home Sealing Program which provides homeowners with detailed information on home sealing and insulation.

Do appliances qualify for the tax credit?

Appliances such as heating and cooling equipment also qualify for tax credits under the Energy Policy Act. For advice on those tax credits, contact the US Department of Energy or the manufacturers or trade associations in that industry.

I’m buying a new home that is energy efficient. Does that qualify for the tax credit?

A separate tax credit for new homes was also passed in the Energy Policy Act. However, this credit is for the builder. Discuss this credit with your builder to see if your new home qualifies.

Can I only use some kinds of insulation to get the tax credit?*

All insulations that meet the Federal Trade Commission requirements for R-value qualify for the tax credit. This includes fiber glass and mineral wool insulations.

If I add insulation to interior walls of my home for sound control, am I still eligible for the tax credit?*

While acoustical insulation adds tremendous comfort to a home, the tax credit applies only to improvements made to the building envelope since they affect energy use. The building envelope does not include internal walls or acoustical insulation. Click here for information on acoustical insulation.

*Disclaimer – While NAIMA is not an expert on tax issues, we believe that if homeowners follow NAIMA’s R-value recommendations, they should qualify for the Federal tax credit based on our understanding of the 2001 and 2004 Supplements to the IECC and the IRS guidelines. However, NAIMA does not state or imply that each and every insulation installation job will qualify for a tax credit. NAIMA does not warrant or guarantee a tax benefit will be awarded for each and every addition of insulation. Eligibility may vary by jurisdiction. Please carefully consult the Internal Revenue Service (www.IRS.gov) rules and guidelines on how to qualify for the energy efficiency tax credit. NAIMA does not provide or offer professional tax counseling.