The residential energy property credit, which expired at the end of December 2014, was extended for two years through December 2016 by the Protecting Americans from Tax Hikes Act of 2015. The Consolidated Appropriations Act, 2018 extended the credit through December 2017. The nonbusiness energy property credit expired on December 31, 2017 but was retroactively extended for tax years 2018, 2019 and 2020 on December 20, 2019 as part of the Further Consolidated Appropriations Act. On December 27, 2020, the credit was again extended through December 31, 2021, by the Consolidated Appropriations Act, 2021. The credit had previously been extended by legislation several times. See Notice 2013-70 for more information on this credit as well as the credit for alternative energy equipment.
These RadiantGUARD® items qualify as part of an energy saving system and meet the requirements for the “Non-Business Energy Property Tax Credit” as “Insulation” under The Consolidation Appropriations Act, allowing a credit of 10% of cost up to overall lifetime (years 2019, 2019, 2020, and 2021) credit limit of $500 if placed into non-business primary residential service from January 1, 2021 through December 31, 2021. The residential applications that qualify for the credit are Attics, Walls, and Crawl Spaces (when properly installed per installation instructions and per program guidelines):
RadiantGUARD® ULTIMA-foil radiant barrier
RadiantGUARD® XTREME radiant barrier
RadiantGUARD® FOIL Bubble reflective insulation
RadiantGUARD® WHITE Bubble reflective insulation
Highlights of the tax credit are:
The tax credit covers product purchased and installed January 1, 2021 through December 31, 2021.
The tax credit is for 10% up to a maximum of $500 for the combined year periods (2018, 2019, 2020 and 2021) 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 for 2021).
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, 2021 through December 31, 2021.
Installation costs are not included.
Must be for taxpayers principal residence.
Improvements made in 2021 will be claimed on your 2021 taxes (filed by April 15, 2021) — use IRS Tax Form 5695.
For tax purposes, save your receipt and the Manufacturer's Certification Statement for 2021.
Must be expected to last 5 years OR have a 2 year warranty.
RadiantGUARD® radiant barriers & reflective bubble insulations are eligible for this tax credit.
Download a copy of the Manufacturer's Certification Statement for 2021 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.
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 10% of that $800 resulting in you paying $80 LESS in federal income taxes.