INTRODUCTION

On February 17th, the American Recovery and Reinvestment Act of 2009 (ARRA) became law. This law extends and modifies the tax credits for insulation established in the Energy Policy Act of 2005. The 2009 Law includes tax credit incentives for homeowners purchasing insulation for their residence.  The language contained in the ARRA of 2009 Law regarding qualification criteria is greatly simplified when compared to The Energy Policy Act of 2005. Thus eliminating much of the confusion tied to the prior 2005 Act about what was required by the homeowner. The purpose of this information is to provide guidance regarding the purchase and application of Guardian Fiberglass, Inc materials under the current policy.  The following guidance is not intended as legal advice, and you should consult a tax professional with specific questions.

OVERVIEW

The recently enacted Law includes a homeowner tax credit incentive up to 30 percent of the cost of qualifying Guardian products, specifically including fiberglass insulation products, to a maximum of $1,500 per household for tax years 2009 and 2010. It also updates the building insulation requirements to follow the 2009 International Energy Conservation Code.  Homeowners that previously claimed tax credits in 2006 or 2007 are eligible for the full $1,500 limit.

-- The tax credit for insulation is only available for existing homes.

-- Insulation R-value requirements must be determined from the Dept of Energy R-value map.

-- The insulation must be installed in the applicant's primary residence.

-- Homeowners will likely need to complete IRS 5695 (Residential Energy Credits) as part of their 2009 or 2010 income tax returns to claim the credit.

--Homeowners are required to maintain records stating that the insulation meets the qualification requirements.  These records are to include receipts and the Manufacturer's Certification Statement.

-- A Manufacturer's Certification is a signed statement from the manufacturer certifying that the products or component qualifies for tax credit.  In the context, "component" refers to a building component, not a component of a product.  Taxpayers must keep a copy of the certification statement for their records, but do not have to submit a copy with their tax return.

--The IRS Regulations pertaining to the 2005 Law are available at www.irs.gov/pub/irsdrop/n-06-26.pdf, and stakeholders are encouraged to refer to the IRS website for developments and further guidance regarding the current tax credit.

ASK AN EXPERT

If you have questions regarding Guardian Fiberglass, Inc. material performance, supply channel options or material availability, please contact Guardian Fiberglass, Inc. Sales and Support Team at (800) 609-8373.  Please refer to IRS website for guidance regarding how to claim the tax credits offered under the current law. 

Please review our other related information including the Department of Energy recommendations for insulation in your area of the country.