Federal Tax Credits for Radiant Barrier & Reflective Bubble Insulation

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For Purchases/Installations in 2011

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 RadiantGUARD® radiant barrier & reflective bubble insulation products.  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, 2012) — 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.

RadiantGUARD® radiant barriers & reflective bubble insulations are 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.

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

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For Purchases/Installations in 2010

The American Recovery and Reinvestment Act of 2009

On February 17, 2009, President Obama signed "The American Recovery and Reinvestment Act of 2009" that made some significant changes to the existing energy tax credits that apply to RadiantGUARD® radiant barrier & reflective bubble insulations.  The highlights are:

• The tax credits that were previously effective for 2009, have been extended to 2010 as well.

• The tax credit has been raised from 10% to 30%.

• The maximum credit has been raised from $500 to $1500 for the two year period (2009-2010) for all improvements combined.

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, 2009 through December 31, 2010

• Installation costs are not included.

• Must be for taxpayers principal residence

• Improvements made in 2010 will be claimed on your 2010 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 2010.

• Must be expected to last 5 years OR have a 2 year warranty.

• Installation costs are not included.

RadiantGUARD® radiant barriers & reflective bubble insulations are eligible for this 2009-2010 tax credit.

Download a copy of the Manufacturer's Certification Statement for 2010 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.

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

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Federal Tax Credit Definition

A federal TAX CREDIT is a full dollar-for-dollar reduction in the amount of federal income taxes an individual owes as opposed to a tax deduction which is only an expense subtracted from one's adjusted gross income that is used to calculate taxes owed based on one's income tax bracket.

In other words, a tax credit is an amount taken off the bottom line of taxes you owe.

For example, if you bought a RadiantGUARD® radiant barrier or reflective bubble insulation product for a total purchase price of $800, you can claim a tax credit of 30% of tha $800 resulting in you paying $240 LESS in federal income taxes.