Good questions when:

Considering Insulation

• Is there a tax credit available for insulation under the stimulus bill?

• Yes, the tax credit for insulation is for 30% of the cost of materials, up to $1,500.

• Is insulated siding covered by the energy tax credits?

• No, for insulation to qualify, its primary purpose must be to insulate.

• Are installation costs eligible covered by tax credits?

• No.
  Installation costs ARE ONLY COVERED for:

  * HVAC (Heating, Ventilation and Air Conditioning) systems
  * Biomass Stoves
  * Water Heaters (including solar)
  * Solar Panels
  * Geothermal Heat Pumps
  * Wind Energy Systems
  * Fuel Cells

• Are insulation costs covered for my new construction home?

• No, new construction and rental/vacation properties are NOT included in the tax credit for insulation.

• What is the maximum tax credit I can get for the energy efficient home improvements?

• Many of the energy efficiency tax credits are limited to $1,500 combined total for 2009 and 2010. The $1,500 maximum tax credit covers insulation, windows & doors, roofs, HVAC, biomass stoves, and non-solar water heaters.

  Improvements not affected by the $1,500 cap include:

  * geothermal heat pumps
  * solar water heaters
  * solar energy systems
  * small wind energy systems
  * fuel cells (up to $500 per .5 kW of power capacity)