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, 2011.
- 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)
For more information about this deduction see Income Tax Information Bulletin #43 on Indiana's Department of Revenue website.