Did you know that there are Federal Tax Credits available for adding insulation to existing homes? For you, that means cold cash when you can make your home more toasty warm.
Home owners are eligible for a tax credit of up to $1,500 for 30% of the costs of qualified energy efficiency improvements made to their homes. Therefore, if a homeowner spends $1,000 on new qualifying insulation, they are eligible for a $300 Federal tax credit. This is a more generous credit than the previous tax credit of up to $500 for 10% of the costs.
To qualify for the tax credit, insulation levels must meet the requirements of the American Recovery and Reinvestment Act of 2009. In Northern California, the R-value recommendations are R-49 for ceilings, R-21 for walls, R-30 for floors, and R-13 for basement walls to meet the criteria for the Federal tax credit. If these insulation levels sound confusing, just ask one of our friendly staff at Friedman’s and we’ll help you figure it out.
If you’re wondering which areas of your home you should insulate, the tax credit applies only to improvements made to the building envelope, since that affects energy use. The envelope is defined as the area along the perimeter of the home that separates the living space from the outside. This includes attics, foundation and exterior walls, basements and crawl spaces.
In addition, the IRS guidelines state that only the cost of the insulation products is eligible for the tax credit, and installation fees are not eligible. This should not deter you from hiring a contractor if you need help, but we just wanted to let you know that this tax-credit has set limitations.
Just to make sure we cover ourselves, Friedman’s does not state or imply that each and every insulation installation job will qualify for a tax credit. Friedman’s 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 guidelines on how to qualify for the energy efficiency tax credit.
Friedman’s can, however, provide you with all the insulation supplies, installation advice, and helpful guidance if you’d like to add tax-credit eligible insulation products to your home. Come visit us at one of our Santa Rosa, Sonoma, or Ukiah stores, or at Friedman’s online, where you’ll get the lowest price and local advice.