tax incentives for insulation, etc

[bookfarmer]

The Green Building Newsletter I receive gave some information about new federal tax incentives for installing insulation, energy efficient windows, sealing ducts, roofing, etc., on residences. For more information about the program, you can go to the website for Tax Incentive Assistance Project: http://energytaxincentives.org/

It looks like the incentives cover material but not labor.

[foxtrapper]

The hook is it's all commercial. If you do it yourself (as in make a pair of storm windows yourself), you cannot write it off, unless you go through the certification process. Be it windows, insulation, appliances, etc. The various catches, clauses, conditions, etc have managed to defeat me at every turn of home improvement.

[Macybaby]

I think if you do the part that was reinstated (is not on the form in the link) that you can do it yourself.

My understanding is it is the same as it was for 2006 and 2007 (the insulation and window part, not the energy part). Between the two years, I claimed the full amount for window replacement and insulation. They only allow materials for those anyway, and mine was 100% DIY.

Since I'm about done with my home, I've not looked into this any further. I know the links aren't very good, as they don't address the reinstated part.

Cathy

[Danaus29]

It says insulation is included but there is nothing about insulation in the form or any link to the old form with the insulation part. I sure hope it's good this year too because we have to insulate our crawl space, IF we can find 12 inch wide vapor barrier insulation.

[Macybaby]

The IRS isn't always good about having forms ready until right before you need them (end of tax year). I work in Accounting and have to look stuff up on the IRS site often.

But from what I've read, it is reinstating the 2006-7 credit with higher limits.

Cathy

[DW]

We just got our elec bill (REA) today and it had a flyer in it about this...I need to investigate. It said will pay 50% weatherization to your home, up to $2,100.

[highlands]

Be aware that to qualify for a lot of these tax incentives and such you must do things in government approved ways, hiring licensed contractors such that the whole thing costs _you_ more than it would if you just did it yourself.

[Mo-Town]

Originally Posted by highlands

Be aware that to qualify for a lot of these tax incentives and such you must do things in government approved ways, hiring licensed contractors such that the whole thing costs _you_ more than it would if you just did it yourself.

I don't see anything in the 2008 form or instructions thereto that requires installation by a licensed contractor with regard to the most commonly used incentives like insulation or energy efficient windows. The IRS isn't trying to exclude DIY-ers.

[highlands]

At one point I called asking about the solar credit and an energy efficiency credit and was explicitly told it could not be Do-It-Yourself.

[kritter8888]

One of the kickers here is that you need to do an itemized tax return and not an EZ form so for many people alot of these deductions are not worth the hassle

[Macybaby]

If you do the EZ or short form, doing the long form in not difficult. You just leave most of it blank. You don't need to itemize to take this decuction, it's a credit and falls in a different area. The energy credits are more complicated, but the weatherization (insulation, new windows) is not, and you do not need a qualified "person" because they only allow materials. The energy credit and weatherization improvement credits are different, though they will be on the same form. If you follow the link above, it ONLY talks about the energy credit.

highlands is correct, but the OP is talking about a different credit.

I'm all for paying the government the least amount I can get by with.

Cathy

[foxtrapper]

Originally Posted by Macybaby

I think if you do the part that was reinstated (is not on the form in the link) that you can do it yourself.

Cathy

If you install a preassembled approved window unit, you can do it yourself.

What you cannot do is make a storm window yourself, and take credit for it.

Same with passive solar heaters, insulation, etc. Only if you buy something already certified (commercially built) can you get a tax break. If you make your own solar heater, you're out of luck.

Unless you go through the certification process. Which isn't cheap or easy.

[Macybaby]

Oh, you are talking about the actual manufacturing process. Yes, what you install does have to meet certain specifications.

I bought my windows and insulation at Menards, so that was not an issue. I want to make sure people did not get the idea that you had to hire a professional to do the installation for the things like windows and insulation.

Cathy