Qualified Materials

• You can receive a tax credit for purchasing bulk insulation materials. Blow-in fiber insulation, spray insulation and rigid boards count toward the credit. You can also receive a tax deduction for purchasing material to help seal cracks in your home. For example, weatherstripping around doors and windows, caulking to seal leaks and spray foam all count toward the federal tax credit.
  
  

Tax Credit Amounts

• Energy Star reports that at the time of publication you can receive a tax credit up to 10 percent of the cost to purchase insulation materials. The credit has a cap of $500. The cost of professional insulation is not included in the tax credit.
  
  

Eligibility

• The tax credit has three basic requirements. You must use the insulation materials in your current primary residence. You cannot use the credit to recoup the costs of upgrading new houses, vacation homes or rentals. You must purchase qualified materials. Energy Star maintains a database of qualified manufacturers. You must file for the tax credit with your income taxes using Internal Revenue Service (IRS) Form 5695.
  
  

Warnings

• Not all insulation materials qualify for a tax credit. Check with the manufacturer before purchasing. The manufacturer can provide a signed statement. Do not attempt to install insulation materials yourself if you don't understand the process, as you could damage your doors, windows or walls.