We are independent & ad-supported. We may earn a commission for purchases made through our links.

Advertiser Disclosure

Our website is an independent, advertising-supported platform. We provide our content free of charge to our readers, and to keep it that way, we rely on revenue generated through advertisements and affiliate partnerships. This means that when you click on certain links on our site and make a purchase, we may earn a commission. Learn more.

How We Make Money

We sustain our operations through affiliate commissions and advertising. If you click on an affiliate link and make a purchase, we may receive a commission from the merchant at no additional cost to you. We also display advertisements on our website, which help generate revenue to support our work and keep our content free for readers. Our editorial team operates independently from our advertising and affiliate partnerships to ensure that our content remains unbiased and focused on providing you with the best information and recommendations based on thorough research and honest evaluations. To remain transparent, we’ve provided a list of our current affiliate partners here.

What is an Insulation Tax Credit?

Jim B.
Updated May 17, 2024
Our promise to you
WiseGeek is dedicated to creating trustworthy, high-quality content that always prioritizes transparency, integrity, and inclusivity above all else. Our ensure that our content creation and review process includes rigorous fact-checking, evidence-based, and continual updates to ensure accuracy and reliability.

Our Promise to you

Founded in 2002, our company has been a trusted resource for readers seeking informative and engaging content. Our dedication to quality remains unwavering—and will never change. We follow a strict editorial policy, ensuring that our content is authored by highly qualified professionals and edited by subject matter experts. This guarantees that everything we publish is objective, accurate, and trustworthy.

Over the years, we've refined our approach to cover a wide range of topics, providing readers with reliable and practical advice to enhance their knowledge and skills. That's why millions of readers turn to us each year. Join us in celebrating the joy of learning, guided by standards you can trust.

Editorial Standards

At WiseGeek, we are committed to creating content that you can trust. Our editorial process is designed to ensure that every piece of content we publish is accurate, reliable, and informative.

Our team of experienced writers and editors follows a strict set of guidelines to ensure the highest quality content. We conduct thorough research, fact-check all information, and rely on credible sources to back up our claims. Our content is reviewed by subject matter experts to ensure accuracy and clarity.

We believe in transparency and maintain editorial independence from our advertisers. Our team does not receive direct compensation from advertisers, allowing us to create unbiased content that prioritizes your interests.

In the United States, an insulation tax credit is a tax benefit to homeowners who add additional insulation to their homes as a way to improve energy efficiency. The most recent US tax laws as of 2011 allow for homeowners to deduct up to 30 percent of insulation costs, with a maximum amount of $1,500 US Dollars (USD) from their yearly taxes. Insulation added must meet certain industry specifications depending on the area of the country in which a person lives. For the insulation tax credit to be applied, homeowners should provide a receipt for the insulation purchased as well as a manufacturer's certification document with their income tax returns.

Many of the recent economic initiatives around the world are based on the efforts to increase energy efficiency, thus cutting down on the need for countries to pay large amounts to foreign energy sources. The United States has instituted many such initiatives, including the passing of a 2005 law that allows for homeowners to be rewarded for such energy-saving efforts. This law, which was beefed up to higher levels in 2009, allows for homeowners to benefit from an insulation tax credit.

The most recent insulation tax credit levels as of 2011 allowed by the US Internal Revenue Service are 30 percent of insulation improvements up to a one-year total of $1,500 USD. For example, if a homeowner added $2,000 USD worth of insulation to his home, he could deduct 30 percent of that amount, or $600 USD, from his tax return that year. This essentially rewards the homeowner for improving energy efficiency, which should also save him money in the future.

It is important to note that the insulation tax credit does not include any work performed by contractors hired by the homeowner to install the insulation. Since this is the case, homeowners should receive an itemized list from the contractor that specifies the exact cost of the insulation itself separate from any installation costs. These costs must be provided on a tax return as well as a manufacturer's certification document that validates the insulation to authorize the credit.

Homeowners should consult with tax professionals to know exactly what type of insulation must be installed to qualify for the insulation tax credit. Insulation levels are measured by an industry standard known as R-value. Different sections of the country require different R-values depending on the parts of the home being insulated. It is also important to know that the credit applies only to insulation installed in the building envelope, which is defined as the part of the home separating the space where people live from the space outside the home.

WiseGeek is dedicated to providing accurate and trustworthy information. We carefully select reputable sources and employ a rigorous fact-checking process to maintain the highest standards. To learn more about our commitment to accuracy, read our editorial process.
Jim B.
By Jim B. , Former Writer
Freelance writer - Jim Beviglia has made a name for himself by writing for national publications and creating his own successful blog. His passion led to a popular book series, which has gained the attention of fans worldwide. With a background in journalism, Beviglia brings his love for storytelling to his writing career where he engages readers with his unique insights.

Discussion Comments

Jim B.

Jim B.

Former Writer

Freelance writer - Jim Beviglia has made a name for himself by writing for national publications and creating his own...
Learn more
WiseGeek, in your inbox

Our latest articles, guides, and more, delivered daily.

WiseGeek, in your inbox

Our latest articles, guides, and more, delivered daily.