Residential Tax Credit

The 2009 economic stimulus package, known as

The American Recovery and Reinvestment Act (H.R. 1),

has become an invaluable sales tool in the insulation

market. In this notice, we will provide overview

information regarding the benefits of the 2009

economic stimulus package that will be extended

through 2010.

This stimulus package promises significant cost

savings for homeowners along with residential

builders, in the form of tax deductions.

Existing Homes:

By adding insulation to a pre-existing home, owners

can receive a tax credit on the total product purchase

price of insulation materials up to $1,500. In order

for the tax credit to be applicable the primary goal

of the installed insulation should be to insulate, the

product must carry a manufacturer's certification,

and the insulation must be expected to last for at

least 5 years, or carry a 2 year warranty.

New Home Construction:

Home builders are eligible for a $2,000 tax credit on

new homes. For eligibility as a residential home builder,

the home must achieve 50% energy savings for heating

and cooling over the 2004 International Energy Conservation Code

(IECC) and supplements. Furthermore, at least 1/5

of the energy savings must come from building envelope improvements. Manufactured home builders are eligible

by conforming to Federal Manufactured Home

Construction and Safety Standards.

the building envelope.

For further information regarding the energy tax

credit, including a copy of the Product's Manufacturer Certification Statement which may be necessary to

receive the above mentioned tax credit, please

follow the links below.

http://www.energystar.gov/index.cfm?c=tax_credits.tx_index#c2

**Please consult your local tax advisor.