Federal

The federal government is offering many tax credits and incentives for upgrading your home’s insulation and sealing air leaks.   Of all the energy efficiency upgrades available for a home, adding adequate insulation is one of the most cost-effective home improvements that you can do.

Under the American Recovery and Reinvestment Act, upgrading insulation in an existing home can qualify for a tax credit of 30% of the cost of materials up to $1,500 total. The existing home must be a principal residence. New construction and rentals do not qualify.

This credit expires December 31, 2010.

To learn how to apply for the credit, click here.

For more information on how insulation is covered by the tax credit, click here.

State
Numerous local organizations offer incentives, credits and/or rebates for increasing the energy efficiency of your home, including municipalities and power companies. For more information about local assistance, contact your city or county leaders and your local power companies.