The federal tax credit for installed insulation in 2010 is 30 percent of the purchase price of the material (but not the labor), up to $1,500. With an average cost of insulating a home, including labor and materials, close to $1,500, an average insulation job would qualify for a $262.26 federal tax credit, Laseter says.
Adding insulation usually results in an annual savings of up to 30 percent of a household's heating and cooling bill, according to Laseter.