President Obama Signs Tax Increase Prevention Act (H.R. 5771) to Officially Extend the Residential Energy Efficiency Tax Credit through December 31, 2014
The Residential Energy Efficiency Tax Credit outlined in 26 USC § 25C of the Internal Revenue Code allows a credit for energy efficiency improvements in the building envelope of existing homes, including improvements such as building insulation. To be eligible for the credit, the insulation improvement must meet the prescriptive requirements established for it under the 2009 International Energy Conservation Code (including supplements).
Tax Credit Details
The American Taxpayer Relief Act of 2012 expired on December 31, 2013. The Tax Increase Prevention Act has retroactively extended the tax credit, applicable to improvements made through December 31, 2014.
- Owners of existing homes may receive a tax credit worth 10% of the cost of upgrading the efficiency of the building’s envelope for any products “placed in service” from Jan. 1 2011 through Dec. 31, 2014.
- Installation (labor) costs are not included and the credit is capped at $500 for all improvements.
- The cumulative maximum amount of tax credit that can be claimed by a taxpayer in all four years (2011, 2012, 2013, and 2014) combined is $500.
- If a taxpayer has already claimed a tax credit of $500 for purchases made in any previous year, they are ineligible for additional tax credits for any new equipment purchases.
Claiming Your Tax Credit
After establishing your eligibility for a claim, please complete the following to ensure accuracy:
- Request an invoice demonstrating the cost breakout of the Progressive Foam siding insulation from your contractor. This cost must exclude the cost of onsite preparation, assembly, original installation labor, siding or sales tax.
- Download the official Manufacturer’s Certificate PDF and IRS Form 5685 following the instructions found at www.progressivefoam.com/tax-credits
- Retain the contractor invoice and our official Manufacturer’s Certificate for your IRS records. You are not required to provide this documentation to the IRS, but you will be required to present it if audited.
The following Progressive Foam siding insulation products, in both original and premium series, qualify as insulation materials and systems designed to reduce a home’s heat loss or gain:
- FullbackV Siding Insulation for Vinyl Siding (drop-in, field-applied)
- FullbackFC Siding Insulation for Fiber Cement
- Linebacker Siding Insulation
- Halfback and HalfbackH20 Universal Siding Insulation
- ProBoard Insulating Sheathing
- ProFold Fan-Folded Underlayment
- Insulating accessories, including corner posts, insulating shims, etc.
For more information, visit www.progressivefoam.com/tax-credits