On January 3, 2013, The American Taxpayer Relief Act of 2012 was passed.
Included in this bill were tax credits for making energy efficient improvements to your main home.
This is a continuation of the tax credit that expired in 2011. The nice thing is that a provision in this bill allows anyone who insulated their home in 2012 to also be eligible for the tax credit.
The credit applies to energy efficiency improvements in the building envelope of 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 are capped at $500 for all improvements.
The Department of Energy reports that 80% of homes built before 1980 are under insulated. With the passage of The American Taxpayer Relief Act of 2012, you may now qualify for a 10% tax credit up to $500 by adding insulation to your home.
Please consult with your tax advisor for more information or contact an insulation expert to help determine what your options are today!