Consumer Tax Incentives
Home Shell: Insulation, Windows, Sealing
What is the tax credit for existing homes?
Existing homes are eligible for a tax credit for a series of efficiency measures that pertain to the home envelope. The credit can amount to as much as 10% of the costs for new, energy-efficient new central air conditioners, heat pumps, and water heaters in existing homes. The credit is capped at $200-500, varying with the type of equipment installed. This applies to any purchases made in 2012 and 2013.
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
- Between January 1, 2012 - December 31st, 2013, which meet ENERGYSTAR ® guidelines. The credit covers 10% of materials costs, 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?
IRS rules require manufacturers 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- measures "placed in service" in 2012 and 2013 are eligible.
To apply for the incentive, use IRS form 5695. Please note that this version of the form is for 2011.
Click here to access IRS guidance on qualifying energy-efficient property.
Where can I find out more about qualifying products?
- U.S. Department of Energy Energy Savers
- American Council for an Energy-Efficient Economy
- National Fenestration Rating Council
- Window Films:
- Duct Sealing:
- Air Infiltration Reduction:
- Home Energy Ratings and Related Services:
- Information on Qualifying Roofs: