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Tax Credits

Install Ra-flect™ Foil Insulation Radiant Barrier Products and Receive Tax Credits*

On October 3, 2008, President Bush signed into law the “Emergency Economic Stabilization Act of 2008.” This bill extended tax credits for energy efficient home improvements (windows, doors, roofs, insulation, radiant barriers***, HVAC, and non-solar water heaters). Tax credits for these residential products, which had expired at the end of 2007, will now be available for improvements made during 2009. However, improvements made during 2008 are not eligible for a tax credit.

The bill also extended tax credits for solar energy systems and fuel cells to 2016. New tax credits were established for small wind energy systems and plug-in hybrid electric vehicles. Tax credits for builders of new energy efficient homes and tax deductions for owners and designers of energy efficient commercial buildings were also extended.

Credit amount is equal to 30% of the amount paid for qualified energy efficiency improvements (NOT including installation) “placed into service” between Jan. 1�“Dec. 31, 2009. The maximum amount of homeowner credit for all improvements combined is $1,500 during the period of the tax credit.

These Section 25C credits are taken on IRS Form 5695 and may not be carried forward to future tax years.

Definition:  Tax “credits” are subtracted directly from total tax liability resulting in a dollar for dollar reduction of taxes due.  If you have no tax liability for the year, then you do not get credit for the tax benefit.

Our Ra-flect™ radiant barrier foil insulation products qualify for the Energy Policy Act of 2005 tax credits, which were recently extended. However, at this time radiant barrier only qualify for tax credits before 2008.

***The IRS has not issued final guidance on this issue, but it does not appear that radiant barriers will be covered in 2009.***

Radiant barriers are not defined in the 2009 IECC (International Energy Conservation Code), which is a requirement of the tax credit. The American Recovery and Reinvestment Act of 2009 expanded the definition of insulation to reference the 2009 IECC (new language is below in bold):

“any insulation material or system which is specifically and primarily designed to reduce the heat loss or gain of a dwelling unit when installed in or on such dwelling unit, and meets the prescriptive criteria for such material or system established by the 2009 International Energy Conservation Code,as such Code (including supplements) is in effect on the date of the enactment of the American Recovery and Reinvestment Tax Act of 2009,”

This FAQ will be updated as soon as the IRS issues guidance on this issue.

*We strongly advises you to talk with your tax professional in determining actual eligibility for tax credits.