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Save 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. Start now, and lower your energy bills for the life of your home.

If you purchased insulation in 2011, you're eligible for a tax credit.

The 2011 tax credit applies to the cost of materials only, not installation fees. Here's how to get your tax credit of up to $500:

The latest tax credit applies only to items purchased in 2011. Include the information on the 2011 tax return you file in 2012.
Save your receipts for all qualified purchases—this is the receipt you received from the store, not your credit card statement.
Complete the Manufacturer's Certification Statement (MCS) for each insulation item. (You may need to complete an MCS for non-insulation products from other manufacturers as well.)
You will need to use IRS Form 5695 to claim the credit. Save and file all documentation with your tax records at home. (Do not send the documents with your tax return.)

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.

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Save on Your Energy Bills.

If you purchased insulation in 2011, you're eligible for a tax credit.

Additional incentives?