Details coming through for the American Recovery and Reinvestment Tax Act of 2009

By February 20, 2009Uncategorized



Consumer Tax Incentives

Home Shell: Insulation, Windows, Sealing

What is the tax credit for existing homes?

Please note that these incentives have changed as of January 17, 2009.
Existing homes are eligible for a series of efficiency measures that pertain to the home envelope, worth 30% of the installed cost (labor and materials). There is a $1,500 cap on the credit per home, including the amount received for heating, cooling, and water heating equipment.

These credits are available for systems placed in service from January 1, 2009, through December 31, 2010.

What is eligible for the federal tax credits?

Eligible measures are:

  • Added insulation to walls, ceilings, or other part of the building envelope that meets the 2009 IECC (& supplements) specifications.
  • Replacement windows and skylights, and exterior doors which are equial to or below a 0.30 U factor and a Solar Heat Gain Coefficient (SHGC) of 0.30.
  • Window films certified by the manufacturer that the product meets the requirements of a "qualifying insulation system."
  • Sealing cracks in the building shell and ducts to reduce infiltration and heat loss – these should be sealed so as to be consistent with the 2009 IECC.
  • Pigmented metal roofs, or an asphalt roof with cooling granules must meet Energy Star requirements.

View IECC Climate Zones by state and county, and IECC 2004 Supplement Edition R-values and U-factors for insulation, windows, and doors (8MB PDF). Coming Soon – IECC 2009

Manufacturers and retailers should be able to help you tell whether a specific product qualifies.

What do I need to do to qualify for the incentives?

Under the IRS rules, manufacturers need to certify that specific measures are eligible. Homeowners should obtain a copy of this certification from the manufacturer, installer or retailer when buying these products. Certifications need not be submitted to the IRS, but should be kept on file in case the IRS has questions. Homeowners should also make notes on when each eligible measure is installed- only measures "placed in service" in 2009 or 2010 are eligible.

To apply for the incentive, use IRS form 5695.
Click here to access IRS guidance on qualifying energy-efficient property.
I don’t think I qualify for the incentive – where can I find information on state-level incentives?

Where can I find out more about qualifying products?