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, 2009.
- 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.
Important. When claiming this deduction, maintain with your records the following information (as the Indiana Department of Revenue may request it at a later date):
- Item(s) purchased
- Purchase price
- Place of purchase
- Date of purchase
- Date of installation
- Amount paid for labor (you cannot include the cost of labor that you did yourself)