2876754
Form 5695 addresses credits for home energy improvements. In 2022, I upgraded my attic insulation as well as added crawl space insulation and a new (upgraded) vapor barrier. But in reading the instructions for this type of improvement, it looks like you can only get a credit for the material cost, not installation. I wanted to confirm that because the company's invoice does not break it down between material and installation. And then it also looks like whatever credit I might claim needs to be offset by any amount I got as a rebate for this upgrade from the state. Any experience with this type of credit would be appreciated.
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Yes, according to guidance from the IRS we do not include assembly, preparation, or installation for the calculation of the credit. Form 5695 Line 19a Qualified energy efficiency improvements (original use must begin with you and the component must reasonably be expected to last for at least 5 years; do not include labor costs) (see instructions). A 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 . . . . . Just include material costs.
Thank you. I'm not sure if the vendor will provide that level of detail but I'll try. However I will remember it for future energy efficiency work I get done.
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