Smart Money

(ARA) - If you’re looking for an easy home improvement project to tackle during your upcoming holiday break, why not choose one that pays you back? Adding insulation in your attic not only helps reduce your heating and cooling bills for years to come, but if you purchase qualifying insulation products before December 31, 2007, you may be eligible for a federal tax credit of up to $500. When was the last time one of your weekend projects gave you that kind of return?

Before you spend any money, you’ll first need to determine how much insulation is needed. To do so, make a trip to your attic and take a look around. If the wood beams of your attic floor are visible, it’s a pretty safe bet that you don’t have enough insulation. But even if you can’t see the beams, it’s no guarantee that there is adequate insulation to achieve optimal energy efficiency. It’s best to measure the insulation. If it’s less than 15.5 inches deep, your attic is probably under-insulated. Although the amount of insulation needed varies depending on the region of the county you live in, the U.S. Department of Energy recommends most attics be insulated to R 49.

R values represent thermal resistance to heat flow and achieving R 49 in your attic requires 15.5 inches of fiberglass blanket insulation (which is commonly sold in rolls or pre-cut lengths called batts), or about 18 inches of blown insulation. To check the recommended R-values for your region and to calculate the amount of insulation you’ll need to purchase, use the handy calculator at www.InsulateYourAtticNow.com. This Web site was created by Owens Corning, known worldwide for its PINK Fiberglas insulation, and features installation instructions, a project checklist and a search function for finding the nearest insulation retailer. Although adding insulation is a simple do-it-yourself project, the site also has a contractor locator if you’d rather hire someone to do it for you.

If you intend to apply for a federal tax credit, make sure you purchase a product that qualifies under the Energy Policy Act of 2005. To find products that meet the requirements of the Energy Policy Act, visit www.owenscorning.com/insulationfedtaxcredit. If you use qualified insulation, you’re entitled to a tax credit worth 10 percent of the purchase price, up to $500. Other requirements of the tax credit include:

* The insulation must be used in your primary residence.
* Homes, condominiums, mobile homes and cooperative apartments qualify.
* Installation costs are not included.
* The insulation must be expected to last five years, or have a two-year warranty.
* Use IRS Form 5695 “Residential Energy Credits.”
* Keep the receipt for the insulation and the Manufacturer’s Certification Statement for your records, but you do not have to submit them with your tax return.
* The Energy Policy Act of 2005 expires on December 31, 2007.

In addition to the federal tax credit, many states and local utilities offer rebates or incentives for homeowners who make energy improvements, so be sure to check locally for region specific information. For more information on how to qualify for the federal energy tax credit, visit www.owenscorning.com/insulationfedtaxcredit.

Courtesy of ARAcontent
 

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