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 - 2010 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 (in other words, insulated siding does not qualify). Most conventional insulation materials such as rolls, batts, blow-in fibers, rigid boards, pour-in-place, and expanding spray siding are covered. The material should be expected to last 5 years or have a 2-year warranty.

Other products that are designed to reduce air leaks may also qualify, as long as they come with a Manufacturers Certification Statement. These may include weatherstripping, spray-foam air seal, caulking designed to air seal, and house wrap.

Amount of federal tax credit: 30% of the material cost, up to $1,500. Installation costs are not included. Professional installation is not required.

Notes: The material must be placed into service between January 1, 2009, and December 31, 2010, in your principal residence. A Manufacturer’s Certification (a 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 your federal taxes, submit IRS Tax Form 5695. For more information, please see the FREE HomeTips Home Insulation Buying Guide.