The 2009 economic stimulus bill ("The American Recovery and Reinvestment Act")
includes an extension and expansion of the existing federal tax credit for installed
insulation. Insulation must be installed in your principal residence between
January 1, 2009 and December 31, 2010.
The federal tax credit for installing insulation is 30% of the purchase price up to
a $1500 tax credit. So a consumer can save as much as $1500 from the purchase price
(not including installation/labor costs) when adding insulation to their existing
home.