Can siding be considered insulation and used as an energy efficient tax credit

[mellynlee]

Can siding be considered insulation to claim the energy efficient tax credit?

I thought I saw somewhere that it can be, IF it meets certain requirements. If so, what are these requirements?

We installed HardiePlank siding on our home.

Thanks!

[DawnC · Accepted solution]

No, unfortunately, a component isn't specifically and primarily designed to reduce the heat loss or gain of your home if it provides structural support or a finished surface (such as drywall or siding) or its principal purpose is to serve any function unrelated to the reduction of heat loss or gain.

The materials that qualify, from energy.gov are:

• Insulation materials and systems that meet International Energy Conservation Code standards. See: Building Energy Codes Program.  A 30% credit, up to a maximum of $1,200, may be allowed for Insulation material or air sealing material or systems.

Qualified energy efficiency improvements are the following building envelope components installed on or in your main home that you owned during 2023 located in the United States if the original use of the component begins with you, the component can be expected to remain in use at least 5 years, and the component meets certain energy standards.

• Any insulation material or system and air sealing material or system that is specifically and primarily designed to reduce heat loss or gain of a home when installed in or on such a home.
• Exterior windows and skylights.
• Exterior doors.

Line 18a. Form 5695

Enter the amounts you paid for any insulation material or air sealing material or system (including any vapor retarder or seal to limit infiltration) that is specifically and primarily designed to reduce the heat loss or gain of your home when installed in or on such home and meets the criteria established by the IECC.

Typical bulk insulation products can qualify, such as batts, rolls, blow-in fibers, rigid boards, expanding spray, and pour-in-place.   Products that air seal (reduce air leaks) can also qualify, as long as they come with a Manufacturer's Certification Statement, including:

• Weather stripping
• Spray foam in a can, designed to air seal
• Caulk designed to air seal
• House wrap

See definitions