Insulation Deduction
If you installed new insulation, weather stripping, double pane windows, storm doors or storm windows in your Indiana home during 2005, you may be able to take the insulation deduction. To take the insulation deduction the following requirements must be met: - The insulating items must have been installed in your principal place of residence located in Indiana;
- The part of your home where the insulating items were installed must have been built before January 1, 2002;
- The insulating items must be an upgrade and not a replacement or like-kind item (e.g., replacing a double pane
window with a new double pane window won't qualify, but replacing a double pane window with a triple pane window will qualify); and
- The deduction must be taken in the year the insulating items were installed.
You are allowed to deduct the actual cost of the qualifying items and labor up to a maximum of $1,000. (You cannot include the cost of labor that you did yourself.)
When claiming the deduction attach a separate sheet stating the:
-
Item purchased
-
Purchase price
-
Place of purchase
-
Date of purchase
-
Date of installation
-
Amount paid for labor.
For more information about this deduction, contact the Department to get Income Tax Information Bulletin #43.Back
