Home Energy Credits

[rjhornbeak]

I replaced my worn out cedar siding with insulated vinyl siding.  Am I eligible to take a Home Energy credit for the cost of this new siding?

[TomD8]

Insulated vinyl siding is not listed as a qualifying item for a federal energy tax credit.  See this:

https://www.energystar.gov/about/federal_tax_credits/non_business_energy_property_tax_credits

[JohnW152]

Unfortunately, you can't.  There's not a federal tax credit available for energy-efficient siding as you describe.

[Opus 17]

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@TomD8 wrote:

Insulated vinyl siding is not listed as a qualifying item for a federal energy tax credit.  See this:

https://www.energystar.gov/about/federal_tax_credits/non_business_energy_property_tax_credits

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Why is insulated siding not included?  The Nonbusiness Energy Property Credit includes 

• Any insulation 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. (form 5695 instructions)

• Insulation material or system specifically and primarily designed to reduce heat loss or gain of your
  home that meets the prescriptive criteria established by the 2009 IECC (form 5695)

Note that even if eligible, the credit is 10% of the product cost, not including installation costs, and you have to be able to prove this if audited.  There is also a lifetime maximum credit for this type of improvement of $500, so if you claimed the credit before, it may be disallowed or limited now.

You would need to research whether the siding you installed meets or exceeds the IECC 2009 specifications.  Maybe the installer or manufacturer can tell you.  

[TomD8]

@Opus 17 --

Perhaps because insulated siding is not "primarily designed" to reduce heat loss or gain.  Unlike fiberglass batts or insulating spray foam, for example.  Just guessing.

[Opus 17]

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@TomD8 wrote:

@Opus 17 --

Perhaps because insulated siding is not "primarily designed" to reduce heat loss or gain.  Unlike fiberglass batts or insulating spray foam, for example.  Just guessing.

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There's nothing in your link that denies siding.  Do you have another source?

[AmeliesUncle]

The 5695 Instructions say:

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.

https://www.irs.gov/instructions/i5695#idm[phone number removed]200

[Opus 17]

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@AmeliesUncle wrote:

The 5695 Instructions say:

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.

https://www.irs.gov/instructions/i5695#idm[phone number removed]200

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That's good.  I think that would mean that if you installed separate insulation panels under the siding, they would be covered, but not a integrated product. 

[AmeliesUncle]

I agree.