Are you thinking about installing insulation in your home to cut down on energy usage? If you are, be sure to take advantage of the 2009 U.S. federal tax credits that have been set up to offer you an incentive and some financial support for making this important energy-saving home improvement.

What is covered? An insulation material or system (including any vapor retarder or seal to limit infiltration) that is specifically designed to reduce heat loss or gain and may be taken into account in determining whether the building thermal envelope meets International Energy Conservation Code (IECC) requirements*. For insulation to qualify, its primary purpose must be to insulate. Most conventional insulation materials are covered, for example, but siding does not qualify. The material must be expected to last 5 years or have a 2-year warranty.

Amount of federal tax credit: 10% of the material cost, up to $500. Installation costs are not included.

Notes: The material must be placed into service between January 1, 2009, and December 31, 2009. A Manufacturer’s Certification (a signed statement from the manufacturer certifying that the product qualifies for the tax credit), which is often available from the manufacturer’s Web site, should be kept in your records along with your receipt. When filing, submit IRS Tax Form 5695 (version 2009), which may not be available on the IRS site until late 2009 or early 2010. For more information, please see the FREE HomeTips Home Insulation Buying Guide.