Green Daily

Did you install insulation in your home in 2007? If you did, you may be able to save up to $500 on your tax bill in tax credits. Installation costs cannot be figured in the calculation. For example, if you paid $3,500 for the insulation materials, you could reduce your tax bill by $350.

In order to qualify for the write offs the insulation's primary purpose must be to insulate and it must meet 2000 IECC & Amendments. Vapor retarders can be included in your calculations, but siding does not qualify. You can't take this write off if the installation was done in a second home or vacation home. The insulation must be expected to last five years or have a two year warranty. If you don't have proof that your insulation meets requirements, contact the company that did the installation. If it does qualify, the installer should be able to supply you with a manufacturer's certification statement. You'll also need to save your receipt for tax purposes.

Want to save money next year?

Check out the Green Daily Guide to Home Energy Efficiency. Get money-saving tips, tricks, and how-to videos for every homeowner. Not only will you save on your utility bill, next year you may be able to write it off your taxes too if legislation now pending in Congress passes to extend the tax credits to 2008!