Custom Insulation Blog

Don’t forget as you do your taxes that the IRS is offering home owners a Federal Tax Credit for qualified home energy improvements. If you recently added new insulation to your home, you may qualify.

Here are the details of the tax credit for putting new insulation in your home.

The Non-business Energy Property Credit Homeowners who install energy-efficient home improvements may qualify for this credit. The 2011 credit is 10% of the cost of qualified energy-efficient improvements, up to $500. Qualifying improvements include adding insulation, energy-efficient exterior windows and doors and certain roofs. The cost of installing these items does not count. You can also claim a credit including installation costs, for certain high-efficiency heating and air conditioning systems, water heaters and stoves that burn biomass fuel. The credit has a lifetime limit of $500. Qualifying improvements must have been placed into service in the taxpayer’s principal residence located in the US before Jan. 1, 2012.

If you have not taken advantage of the energy tax credit, the time is now.  Several federal energy tax credits originally slated to end in 2010 were extended through December 31, 2011.

Here's how the energy tax credits work:

You may claim a credit for 10% of the total cost of various home energy-efficiency products for your existing primary residence, including: insulation and biomass stoves.

For biomass stoves, the maximum combined credit is $300 (10% credit for the purchase of a 75% efficient biomass stove, insert or fireplace).

For other qualifying products, the maximum combined credit is $500 (10% percent of $5,000 in total cost) for all allowable products purchased between 2006 and 2011.

Tax advantages are just one of many reasons to conserve energy. Besides helping to protect the environment and reduce your carbon footprint, you can also save a lot of money on home heating. According to the Department of Energy, you can reduce your heating and cooling bills about 10% per year by simply turning your thermostat back 10°-15° for eight hours. Supplementing you home heating with a wood or pellet stove can let you do this.

Other cost-saving ideas include:

Insulate your home. Up to 30% percent of heated or cooled air can be lost through leaks, so add weather stripping and caulking wherever air escapes.
 
Heating water is the third-largest home energy expense, after heating/air conditioning and electrical appliances, so try lowering your water heater temperature to 120º F or lower.

Install tempered glass doors and a heat-air exchange system to your fireplace to re-circulate warmed air; and always close the damper when not in use.

Bottom line: Take advantage of financial incentives available to make your home more energy efficient, now before the winter's chill.

Contact Custom Insulation Co. for more information on making your home more energy efficient.

Excerpts from Huffington Post