Tips on Tax Credits

Get Insulated, Weatherized and Less Taxed

Upgrade with weatherization. Choose an option that works the best for your home and budget.

Weatherization (roof ventilation and upgrades, energy efficient windows,etc.) of your home or business can be a huge energy saver when its time to pay the heating and cooling bills - especially with the tax credits for 2009 and 2010. Roof ventilation? New windows? Insulation? What does your home need most?

We've discussed a little about roofs and windows in past notes. Proper insulation is another big energy-saver. Here are a few things to know.

GOOD NEWS: The tax credit reimbursements for insulation in 2009 and 2010 are higher than in previous years. The Federal tax credit is 30% of the cost of materials, up to $1500 per household for insulation and other improvements combined. The new tax credit codes also allow energy-efficiency gains of 15% over those in 2006. Not bad.

NEED TO KNOW: Energy efficiency is higher, because the rules are tougher, especially in colder areas of the country like Michigan.

1. Your remodeler must know the proper R-values (thermal resistance values) for wood-frame walls, ceilings, attics, floors, and more - and know them for your area of the country.

2. Remodelers also need to know what insulation products have the proper R-values that fit with your building. For instance, new homes are a little easier to insulate b/c the new insulation has nothing standing in its way (so to speak). Remodeled homes and commercial buildings sometimes have old insulation compressed into nooks and crannies that could compromise the R-value when the new insulation is installed.

3. The materials could include anything from batts, spray foam, loose-fill; wraps, sealants, tapes, and flashing - even structural insulated panels. But the materials' primary purpose must be to insulate and must be expected to remain in use for at least 5 years or have a minimum 2-year warranty.

4. Get the manufacturer's certificate for your records and for your accountant.

5. Materials must be installed by Dec. 31, 2010 and meet the 2009 IECC (International Energy Conservation Code) requirements.

6. There are numerous products that meet the specified R-value. However, some of the best products recommended by green advocates are more expensive. So weigh your lifestyle, budget, needs and energy-saving options with your remodeler.

Thanks to Our References

* Grand Valley State University -- Michigan Alternative & Renewable Energy Center
* Remodeling Magazine

Team Restoration is a restoration and remodeling company that is owned and operated in Grand Rapids, Michigan.


We strive to provide information that is helpful to you and well researched. However, this post can't be responsible for your unique situation. Please consult your tax adviser and use this tip to do your own research. Check with government agencies to be sure that you qualify for the credit and that the information is current to you.
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