2009 Tax Credit Info
2009 TAX CREDIT INFORMATION
Bird Family Insulation
RE: Existing Home Re-insulation
-Time Period: The eligible insulation must be placed into service between Jan 1 – Dec 31, 2009.
-Credit Limits: The homeowner can take a tax credit equal to 30% of the cost of insulation installed in their home, with a $1,500 maximum cap. In other words, take 30% of the cost of your insulation for a tax credit, with the credit capped at $1,500 (i.e., $5,000 insulation cost).
-Qualifying Insulation: For insulation to qualify, it’s primary purpose must be to insulate.
-Material Costs Only: Though the initial legislation does not stipulate this, the IRS rules implementing this portion of the tax credit specifies that installation costs are not included when determining the total costs of the insulation job. Bird Family Insulation will designate material costs in your follow-up package.
-What the Homeowner Needs: A homeowner (tax payer) does NOT have to submit receipts or the manufacturer’s certification to the IRS. The homeowner simply has to,
1. Save the receipt/bill for the insulation and the Manufacturer’s Certification Statement along with their other tax records.
2. Complete and submit IRS Form 5695 when filing their taxes for 2009. www.energystar.gov/index.cfm?c=products.pr_tax_credits
NOTE: This is not tax advice. Always consult a tax professional.
On February 17, 2009, President Obama signed a stimulus bill (The American Recovery and Reinvestment Act of 2009) that made some significant changes to the energy efficiency tax credits. The highlights are:
* The tax credits that were previously effective for 2009, have been extended to 2010 as well.
* The tax credit has been raised from 10% to 30%.
* The tax credits that were for a specific dollar amount (ex $300 for a CAC), have been converted to 30% of the cost.
* The maximum credit has been raised from $500 to $1500 for the two years (2009–2010). However, some improvements such as geothermal heat pumps, solar water heaters, and solar panels are not subject to the $1,500 maximum.
* The $200 cap on windows has been removed.
You must be completely, enthusiastically satisfied with the quality of our work in your home, or your insulation is FREE. 