New Insulation in Your Home in 2011 - Use the Federal Tax Credit

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.