Homeowners can now enjoy a special tax credit designed to encourage energy efficient improvements to their main home.
Great news for those who upgraded their insulation in 2015 and for those considering an upgrade in 2016. Congress has reinstated the federal tax credit on installed insulation for both 2015 and throughout 2016!
This tax credit creates a retroactive opportunity for homeowners who upgraded their insulation last year (2015) on their 2015 returns. The credit applies to energy efficiency improvements in to existing homes. In order for homeowners to qualify for the tax credit the home must be in the United States and serve as the taxpayer’s primary residence.
Owners of existing homes may receive a tax credit worth 10% of the cost of upgrading the efficiency of the building’s envelope including adding additional insulation. Installation (labor) costs are not included and the deduction is capped at $500 for all improvements. Consult your tax advisor for more information, you can download the iRS form HERE.