If you install insulation in 2009*, 2010, or 2011, you are probably eligible for a federal tax credit. Federal tax law, specifically the "American Recovery and Reinvestment Act of 2009," was written to encourage energy savings and covers 2009* and 2010. The "Tax Relief, Unemployment Insurance Reauthorization and Job Creation Act," passed in December 2010, extends a smaller credit into 2011. Attic insulation qualifies for the 30 percent tax credit (2010), or 10 percent tax credit (2011), if it meets the International Energy Conservation Code of 2000 and is in your primary existing residence. That is 30 percent (or 10 percent) of the cost of the insulation. Labor is not included. The tax credit can be up to $1,500 for the 2010 tax year or $500 for 2011. There is no income limit to be eligible for the credit.

A Tax Credit is a direct deduction from the amount of taxes you pay. For example, if your tax liability is $10,000 and you are eligible for the full $1,500 credit, your tax liability would be reduced to $8,500.

To receive the credit on your taxes, you need to include IRS form 5695 with your return (click to download the pdf form for the 2009* tax year. The form for 2010 is here with additional information here. Use Acrobat or SumatraPDF (link below) to open it after saving it to your hard disk. The form for 2011 is apparently not available yet.). For your records, keep the receipts from Done Right Roofing as well as the Manufacturer's Certification Statement which can be downloaded from the Owens-Corning website. A direct link to download the statement in PDF format is here. Use Adobe Acrobat or SumatraPDF to open, view, and print it. A link to the Owens-Corning website is at the bottom of this page. Done Right buys insulation materials from Owens-Corning, the premiere brand. Your receipts specify the products used so you can determine your eligibility and keep them with your tax records.

The Owens-Corning website also has specifics that are downloaded with the certification form.

Insulation is one of the most cost-effective home improvements that you can do. It can reduce your heating and cooling costs by up to 20 percent. Done Right Roofing uses expanding blown in fiberglas insulation which can be installed faster than other loosefill insulation, saving you money. Owens-Corning fiberglas insulation also doesn't settle which preserves its insulating ability unlike lower quality materials. Fiberglas insulation is not messy during installation unlike cellulose. It also won't absorb moisture and, unlike cellulose insulation, requires no fire retardant chemicals. Those chemicals sometimes cause corrosion of pipes, wires, and fasteners.

Some products that reduce air leaks are also eligible for the tax credit, including weather stripping, spray foam in a can, designed to create air tight seals, and caulk designed to also create air tight seals.

Certain roofs that increase reflection of the sun's heat also qualify for the tax credit. They can decrease the temperature of the roof up to 100 degrees and greatly reduce your air conditioning costs. Some asphalt shingle roofs with reflective cooling granules and/or certain pigments qualify. Click here or on the Roofing button on the left to get specifics.

*Talk to your tax preparer about specifics for 2009.