Federal Tax Incentives for Adding Insulation
How would you like the Federal Government to pay you for adding insulation to your home?
You save money and make your home more comfortable and the Federal Government pays you.
Sound too good to be true, but it's not!
In August 2005, the first national energy bill in more than a decade was signed into law. It contains tax incentives to encourage energy efficiency and conservation in America’s homes and buildings. It includes energy efficiency tax incentives for making improvements to new and existing homes, manufactured homes and commercial buildings.
With energy costs skyrocketing, these tax incentives will help homeowners and builders make improvements to new and existing homes and buildings, which account for more than 40% of all energy used in the US.
Why Insulation is a Good Investment
Investing in products to make homes more energy efficient pays significant dividends over a lifetime — with none of the wild fluctuations of Wall Street. Insulation contributes to:
- Greater comfort
- Even temperature distribution
- Improved acoustics
- Better moisture control, which can reduce floor squeaks, drywall cracks, structure damage and condensation
- Potential for increased resale value: Installing proper insulation levels can also make your home more attractive to potential buyers. In fact, most buyers list energy-efficiency as a prime consideration. The reason? Buyers know they can buy a more expensive home if heating and cooling bills can be kept down.
- A more environmentally friendly home
- Lower energy bills* Unless your home was constructed with special attention to energy efficiency, adding insulation will probably reduce your utility bills.
- 60% of the existing homes in the United States are not insulated to the best level.
- According to a study done by Harvard University's School of Public Health, 60% of the existing homes are likely to use more energy than newer homes, leading to very high heating and air-conditioning bills.
- Even if you own a new home, adding insulation may save enough money in reduced utility bills to pay for itself within a few years and will continue to save you money for as long as you own the home.*
Savings may vary. Find out why in the seller's fact sheet on R-values.
Air Seal and Insulate with ENERGY STAR
Sealing and insulating the "envelope" or "shell" of your home — its outer walls, ceiling, windows, doors, and floors — is often the most cost effective way to improve energy efficiency and comfort. ENERGY STAR estimates that a knowledgeable homeowner or skilled contractor can save up to 20% on heating and cooling costs (or up to 10% on their total annual energy bill) by sealing and insulating.
To Seal and Insulate with ENERGY STAR:
- Seal air leaks throughout the home to stop drafts,
- Add insulation to block heat loss in winter and heat gain in summer,
- Choose ENERGY STAR qualified windows when replacing windows.
Sealing Leaks
Many air leaks and drafts are easy to find because they are easy to feel — like those around windows and doors. But holes hidden in attics, basements, and crawlspaces are usually bigger problems. Sealing these leaks with caulk, spray foam, or weather stripping will have a great impact on improving your comfort and reducing utility bills. Click on the house diagram to see common air leak locations that you should aim to seal.
Homeowners are often concerned about sealing their house too tightly; however, this is very unlikely in most older homes. A certain amount of fresh air is needed for good indoor air quality and there are specifications that set the minimum amount of fresh air needed for a house. If you are concerned about how tight your home Premiere Insulation is a Home Energy Rater, who can use diagnostic tools to measure your home's actual leakage. If your home is too tight, a fresh air ventilation system may be recommended.
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