Insulation is classified as a building improvement and is depreciated over 27.5 years. It is would be classified as Residential Real Estate. It is not a land-improvement.
Section 179D I is generally available for multifamily residential rental buildings that are at least four stories above ground. This deduction is designed to encourage energy-efficient improvements, such as upgrades to lighting, HVAC systems, or building envelopes, in qualifying buildings.
Last thing I wish to mention that there is no 179 deduction for insulation. The other things that are mentioned have a determinable life such as appliances, carpets, furniture. These wear out over a relatively short period of time thus are eligible for the 179 deduction.
Insulation doesn't wear out easily thus has a much longer life span than appliances, carpets, furniture etc. It often lasts as long as the building. That is why it depreciated over 27.5% years and not eligible for the 179 Deduction.
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