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 February 17, 2009. If you installed home envelope components between January 1 and February 16, 2009, click here.
Existing homes are eligible for a series of efficiency measures that pertain to the home envelope, worth 30% of the cost of equipment (materials only, labor is not included in the credit basis). 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.
Congress extended this provision for 2011 with some modifications to eligibility requirements, and reductions in the cap to $500 per home, and 10% of installed cost for qualifying equipment.
I don't think I qualify for this incentive - where can I find information on state-level incentives?
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
- Up until December 31, 2010: which are equal to or below a 0.30 U factor and a Solar Heat Gain Coefficient (SHGC) of 0.30. Storm windows that meet the IECC in combination with their paired external window are eligible (taking into account the applicable climate zone). Storm doors paired with U-factor rated wood doors are eligible provided they do not exceed the default U-factor requirement for the combination. See the 2009 IECC for details.
- Between January 1-December 31st, 2011 – which meet ENERGYSTAR ® guidelines. The credit covers 10% of the material cost, up to $200.
- 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, and IECC 2009 R-values and U-factors for insulation, windows, and doors (PDF).
For more information on energy codes, visit the ICC Store, or The Green Destination: Essential Information for Green Building
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. Please note that this version of the form is for 2008, and so does not include line items for the incentives discussed on this page. There will be a section for these incentives on the 2009 iteration of the form which will likely be available in early 2010.
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?
- Insulation:
- Windows:
- U.S. Department of Energy Energy Savers
- American Council for an Energy-Efficient Economy
- EfficientWindows.org
- National Fenestration Rating Council
- Window Films:
- Duct Sealing:
- Air Infiltration Reduction:
- Home Energy Ratings and Related Services:
- Information on Qualifying Roofs:
