Testimonial
"My home is no longer drafty and cold in the winter and in the summer it has stayed considerably cooler. But the best part of all is only after two years, I have almost totally recovered my investment through my savings on fuel bills. Insulating my home with cellulose was without a doubt the best investment I've ever made in my home."

Mr. Gregory, Wichita, Kansas

Consumer Tax Incentives
What is the tax credit for existing homes?

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. The cap applies to the combined value of credits claimed in both 2009 and 2010.

These credits are available for systems placed in service from January 1, 2009, through December 31, 2010.

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 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.

For exterior windows and skylights purchased before June 1, 2009, the IRS and US Treasury have announced that existing manufacturer certifications and Energy Star labels will be accepted (assuming the window or skylight is installed in the label's specified region), due to unavailability of new criteria based on ARRA. For purchases dated June 1 onwards, the new, more stringent, criteria apply. See the IRS guidance and press release.

Window films certified by the manufacturer to meet 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.

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.