Do You Want To Pay Less In Taxes Next Year? New Federal Tax Credits Are Available In 2006 And 2007 For Adding Insulation To Your Home

Increasing Energy Efficiency Pays for Itself and Helps Homeowners Earn Up To $500 in Tax Credits

Alexandria, VA (March 15, 2006) – Americans are busily finishing their 2005 taxes and hoping to get a refund rather than writing a big check to the IRS. If you are feeling the pain this tax season, the North American Insulation Manufacturers Association (NAIMA) reminds consumers of a simple savings tip for your 2006 and 2007 taxes – Simply Insulate!  Congress recently passed the Energy Policy Act of 2005, which includes consumer and builder tax incentives for increasing the energy efficiency of new and existing homes through measures like adding insulation. 

NAIMA encourages homeowners to increase the insulation level in their home and take advantage of this short-term tax credit for doing so. If you were one of the lucky Americans to get a refund this year, why not reinvest it in your home by adding fiber glass or mineral wool insulation and taking other steps to improve energy efficiency? It will pay immediately in energy cost savings and will pay next year at tax time.  

“Harvard University’s School of Public Health estimates that 65 percent of American homes are under-insulated,” stated Kenneth D. Mentzer, president and CEO of NAIMA.  “Increasing insulation is an easy way to quickly improve a home’s energy efficiency.  By increasing a home’s insulation levels, homeowners can also save on their monthly heating and cooling bills.  We hope the federal tax credits will make it even more worthwhile for homeowners to improve their homes’ energy use.”

NAIMA advises that most homeowners will need to add between an R-19 and R-30 insulation to their attics in order to qualify for the tax credit and increase their comfort and savings. Consumers should also consider adding insulation to their unfinished basements and crawlspaces as well, since these areas are easy to access and are often under-insulated or not insulated at all.  Insulation pays for itself and continues saving for the life of the home. Savings may vary, find out why in the seller's fact sheet on R-values. Higher R-values mean greater insulating power.

The credit for existing homes is for 10 percent of the final cost of qualified home improvement products for a maximum of $500 over both tax years. Consumers should consult the IRS guidance at www.irs.gov to make certain they meet the requirements to qualify for this tax credit.

NAIMA’s website, www.SimplyInsulate.com, provides homeowners with free resources to help them assess and take action to increase the energy efficiency of their homes and take advantage of the federal tax credit.  SimplyInsulate.com also provides step-by-step instructions for adding fiber glass and mineral wool insulation to a home, recommendations on the appropriate insulation levels for all US geographic areas, and information on how to find and hire an insulation contractor.  The site lists state and utility incentives offered to homeowners who raise their home’s insulation levels that can be taken in addition to the federal tax credit. Other useful web sites for information on the federal tax credit include the Tax Incentives Assistance Project (TIAP) at www.energytaxincentives.org and the US Department of Energy at http://www.energy.gov/taxbreaks.htm.