You’re Here: Home » Home Insulation » Saving Money » Energy Tax Credit

Save on your energy bills now and later.

Save now with an energy tax credit.

Thanks to the American Recovery and Reinvestment Act of 2009, you can get a 30 percent tax credit when you make energy efficient improvements to your home, including adding insulation. Other qualifying products include windows, doors, water heaters, roofing and heating and cooling systems.

Save later on your energy bills.

Adding insulation and sealing air leaks is the single most cost-effective way to make your home more energy efficient. To maximize your energy savings, you should have up to 19 inches (R-49) of insulation in your attic. Adding insulation not only helps lower energy bills, it will help keep your home more consistently comfortable. Properly insulating is more cost-effective than adding energy efficient windows or other improvements.

Two more places that are easy to insulate are crawl spaces and basements. If these areas of your home are not insulated or are under-insulated, this is the year to take care of it. You'll get a tax credit, and lower your energy bills for the life of your home.

Why JM Formaldehyde-free™ insulation is a great choice—now and later.

Reducing the amount of formaldehyde in your home can provide a healthier environment for you and your family now and in the future. Choosing JM Formaldehyde-free™ insulation is one way of achieving that goal. JM insulation is made with 25 percent post-consumer bottle glass—that's more certified post-consumer recycled content than any other brand of fiber glass building insulation. And unlike cellulose, fiber glass will not appreciably settle, meaning it maintains its R-value and will help keep your home comfortable for decades to come.

The details of the tax credit.

The credit applies to the cost of materials only, not the cost of installation. The credit is $1500 or up to 30 percent of the purchase price of insulation or other qualified energy efficiency products. Here’s how to get it:

Save your receipts for all qualified purchases – this is the receipt you get from the store, not your credit card statement.
Fill out Manufacturer's Certification Statement for each item – you may need to fill out Manufacturer's Certification Statements for non-insulation products from other manufacturers as well.
File all documentation with your tax records – do not send the documents with your tax return. You'll need to use IRS Form 5695 to claim the credit.
The tax credit applies to items bought in 2009 or 2010 - include the information on the tax return you file in 2010 or 2011, respectively.

Your purchase must be used in your primary residence. Find out more and plan your insulation project now!

Additional incentives?

You may be eligible for additional incentives from adding insulation or making other energy efficiency improvements. Many state and local governments and utilities offer incentives. Please check with your local utilities company for more information and JM's Energy Incentives Search, a searchable database of energy incentives by state.

JM Toolbox