Radiant Barrier Tax Credit
Tax Relief, Unemployment Insurance Reauthorization, and Job Creation Act of 2010
On Friday, December 17, 2010, President Obama signed the “Tax Relief, Unemployment Insurance Reauthorization, and Job Creation Act of 2010″ which extends the IRS Section 25 tax credit for energy efficient credits offered for Energy Improvement Shield® radiant barrier. The highlights are:
- The tax credits have been extended to the end of 2011.
- The tax credit has been reduced from 30% to 10%.
- The maximum credit has been reduced from $1500 to $500 for the 5 year period (2006, 2007, 2009, 2010, and 2011) for all improvements combined (for example, if you have already claimed a 25c tax credit of $500 or more, you would not be eligible to make a tax credit claim in 2011).
Radiant Barrier Tax Credit Summary:
- For a radiant barrier or reflective bubble insulation product to qualify, its primary purpose must be to insulate.
- Must be “placed in service” from January 1, 2011 through December 31, 2011.
- Installation costs are not included.
- Must be for taxpayers principal residence.
- Improvements made in 2011 will be claimed on your 2011 taxes (filed by April 15, 2011) — use IRS Tax Form 5695 (2009 version)
- For tax purposes, save your receipt and the Manufacturer’s Certification Statement for 2011.
- Must be expected to last 5 years OR have a 2 year warranty.
- Installation costs are not included.
The bill also extends the IRS Section 45L tax credit of up to $2,000 for home builders of new energy efficient homes through 2011. This builder credit is retroactive to January 2010.
- We strongly advise you to talk with your tax professional in determining actual eligibility for tax credits.
- Energy Improvement Shield® radiant barrier is eligible for this 2011 tax credit!
- Download a copy of the Manufacturer’s Certification Statement for 2011 and SAVE WITH YOUR TAX RECORDS if you plan to obtain the tax credit. You do not need to submit this form to the IRS with your tax form.
