Home improvements

[kellyinpa]

I had new vinyl siding installed in 2020 with added insulation.  Does this qualify for an energy credit on my federal return? 

[Carl]

From what I see on the IRS website at https://www.irs.gov/newsroom/energy-incentives-for-individuals-residential-property-updated-question... (which I suggest you review)

Qualified energy efficiency improvements include the following qualifying products:

• Energy-efficient exterior windows, doors and skylights
• Roofs (metal and asphalt) and roof products
• Insulation

Residential energy property expenditures include the following qualifying products:

• Energy-efficient heating and air conditioning systems
• Water heaters (natural gas, propane or oil)
• Biomass stoves

[ToddL99]

The additional insulation may qualify for the Nonbusiness Energy Property Tax Credit, but vinyl siding is not on the list of qualifying improvements - and  you must have written certification from the manufacturer that the insulation meets the standards to claim this credit.

From the IRS Get Credit for Making a Home Energy Efficient:

Part of this credit is worth 10 percent of the cost of certain qualified energy-saving items added to a taxpayer’s main home last year. Qualified improvements include adding insulation, energy-efficient exterior windows and doors, and certain roofs. Do not include the cost to install these items.

Be sure to have the written certification from the manufacturer that their product qualifies for this tax credit. They usually post it on their website or include it with the product’s packaging. Taxpayers can use this to claim the credit. Do not attach it to a tax return. Keep it with tax records.