On February 17, 2009, the American Recovery and Reinvestment Act of 2009 was signed into law. Known as the "stimulus bill," this Act extended previous tax credits and created new tax credits for adding energy efficiency to existing homes. Insulation and sealants that reduce air infiltration or add insulation value may qualify homeowners for a tax credit for 30 percent of the cost of materials (maximum $1,500), if all other eligibility requirements are met. Installation costs are NOT covered by the tax credit.
Builders/Remodeling Professionals:
Learn more about what you can do
- Improvements must be "placed in service" in 2009 or 2010
- Improvements must be made on the taxpayer's principal residence
- Products must have a Manufacturer’s Certification Statement (86KB PDF) (a signed statement from the manufacturer certifying that the product qualifies for the tax credit)
Homeowners:
Learn more about what you need to know and claiming the tax credit below.
Claiming the Tax Credit
Homeowners can claim the tax credit when filing their 2009 Income Tax (filed by April 15, 2010). Use IRS Form 5695 (2009 version). Be sure to save receipts and the Manufacturer’s Certification Statement (86KB PDF) certifying that the product qualifies for the tax credit.
Consult a tax advisor to determine how to qualify and apply for potential income tax credits.
The U.S. Department of Energy (DOE) and Energy Star have made extensive information about the new tax incentives available on their respective Web sites. Select DOE or Energy Star to learn more.
