Tax Deductions
Idaho Insulation Tax Deduction
If your home was built before 1976, you can deduct the cost of adding insulation to your home in the year the insulation was installed. Replacement of the insulation is not eligible for the deduction.
Insulation materials include fiberglass, cellulose, polystyrene, and polyisocyanurate. Other materials include mastic, caulk, double pane windows, storm doors and storm windows. Labor costs are also deductible.
If for example, you have single pane windows, double pane windows are eligible for the deduction. Also, if you have double pane windows with a steel or aluminum frame you can deduct the cost to install Energy Star rated, vinyl windows.
The deductions are claimed on the Idaho Supplemental Schedule, Form 39R. Contact the Idaho State Tax Commission for additional details.
http://tax.idaho.gov/
800-972-7660 or 334-7660 (Boise area)
Alternative Energy Tax Deduction
If you install an alternative energy device in your home you can deduct a portion or all of the cost of the device over 4 years.
| Year | Deduction |
|---|---|
| 1 | 40% or $5,000, whichever is less |
| 2 | 20% or $5,000, whichever is less |
| 3 | 20% or $5,000, whichever is less |
| 4 | 20% or $5,000, whichever is less |
Alternative energy devices include solar, wind, geothermal systems. Ground source heat pumps and water source heat pumps are eligible. Traditional air-to-air heat pumps are not eligible.
If you have a non-certified wood stove in the home you can deduct the cost to install an Environmental Protection Agency (EPA) certified wood stove or wood pellet stove. Natural gas or propane heating units can also replace the noncertified wood stove. The noncertified wood stove must be taken to a site authorized by the Idaho Department of Environmental Quality within 30 days of purchasing the new heating unit. The unit replacing the wood stove must be installed in the same year the noncertified stove was removed.
The deductions are claimed on the Idaho Supplemental Schedule, Form 39R. Contact the Idaho State Tax Commission for additional details.
http://tax.idaho.gov/
800-972-7660 or 334-7660 (Boise area)
Contact the Idaho Department of Environmental Quality for more details regarding the wood stove replacement.
http://www.deq.state.id.us/ or call 208-373-0502. DEQ offices are in Boise, Coeur d'Alene, Idaho Falls, Twin Falls, Lewiston and Pocatello.
Terry Hoebelheinrich
208-287-4899
terry.hoebelheinrich@oer.idaho.gov