diff --git a/CHANGELOG.md b/CHANGELOG.md
index 9a0ab810e..1136136f8 100644
--- a/CHANGELOG.md
+++ b/CHANGELOG.md
@@ -14,6 +14,16 @@ bundle exec rails webpacker:install
   ```
 - Check node version and yarn before installing webpacker - [#217](https://github.com/rails/webpacker/issues/217)
 
+- Include webpacker helper to views - [#172](https://github.com/rails/webpacker/issues/172)
+
+- Webpacker installer on windows - [#245](https://github.com/rails/webpacker/issues/245)
+
+- Yarn duplication - [#278](https://github.com/rails/webpacker/issues/278)
+
+- Add back Spring for `rails-erb-loader` - [#216](https://github.com/rails/webpacker/issues/216)
+
+- Move babel presets and plugins to .babelrc - [#202](https://github.com/rails/webpacker/issues/202)
+
 ### Added
 - A changelog - [#211](https://github.com/rails/webpacker/issues/211)
 - Minimize CSS assets - [#218](https://github.com/rails/webpacker/issues/218)
@@ -26,6 +36,8 @@ app/javascript/packs/hello_vue.js
 app/javascript/packs/hello.vue
 ```
 - Add tree-shaking support - [#250](https://github.com/rails/webpacker/pull/250)
+- Add initial test case by @kimquy [#259](https://github.com/rails/webpacker/pull/259)
+
 
 ## [1.1] - 2017-03-24
 
diff --git a/lib/install/config/.babelrc b/lib/install/config/.babelrc
new file mode 100644
index 000000000..a8211d329
--- /dev/null
+++ b/lib/install/config/.babelrc
@@ -0,0 +1,5 @@
+{
+  "presets": [
+    ["env", { "modules": false } ]
+  ]
+}
diff --git a/lib/install/config/loaders/core/babel.js b/lib/install/config/loaders/core/babel.js
index 82481e15e..c608e708f 100644
--- a/lib/install/config/loaders/core/babel.js
+++ b/lib/install/config/loaders/core/babel.js
@@ -1,10 +1,5 @@
 module.exports = {
   test: /\.js(\.erb)?$/,
   exclude: /node_modules/,
-  loader: 'babel-loader',
-  options: {
-    presets: [
-      ['env', { modules: false }]
-    ]
-  }
+  loader: 'babel-loader'
 }
diff --git a/lib/install/config/loaders/installers/react.js b/lib/install/config/loaders/installers/react.js
index 065dc4e07..cfd641774 100644
--- a/lib/install/config/loaders/installers/react.js
+++ b/lib/install/config/loaders/installers/react.js
@@ -1,11 +1,5 @@
 module.exports = {
   test: /\.(js|jsx)?(\.erb)?$/,
   exclude: /node_modules/,
-  loader: 'babel-loader',
-  options: {
-    presets: [
-      'react',
-      ['env', { modules: false }]
-    ]
-  }
+  loader: 'babel-loader'
 }
diff --git a/lib/install/config/loaders/installers/vue.js b/lib/install/config/loaders/installers/vue.js
index 7dbab0409..9a56758bb 100644
--- a/lib/install/config/loaders/installers/vue.js
+++ b/lib/install/config/loaders/installers/vue.js
@@ -1,10 +1,4 @@
 module.exports = {
   test: /.vue$/,
-  loader: 'vue-loader',
-  options: {
-    loaders: {
-      scss: 'vue-style-loader!css-loader!sass-loader',
-      sass: 'vue-style-loader!css-loader!sass-loader?indentedSyntax'
-    }
-  }
+  loader: 'vue-loader'
 }
diff --git a/lib/install/react.rb b/lib/install/react.rb
index b5f3b737f..5655882bd 100644
--- a/lib/install/react.rb
+++ b/lib/install/react.rb
@@ -1,11 +1,27 @@
 require "webpacker/configuration"
 
+babelrc = Rails.root.join(".babelrc")
+
+if File.exist?(babelrc)
+  react_babelrc = JSON.parse(File.read(babelrc))
+  react_babelrc["presets"] ||= []
+
+  unless react_babelrc["presets"].include?("react")
+    react_babelrc["presets"].push("react")
+    puts "Copying react preset to your .babelrc file"
+
+    File.open(babelrc, "w") do |f|
+      f.puts JSON.pretty_generate(react_babelrc)
+    end
+  end
+else
+  puts "Copying .babelrc to app root directory"
+  copy_file "#{__dir__}/examples/react/.babelrc", ".babelrc"
+end
+
 puts "Copying react loader to #{Webpacker::Configuration.config_path}/loaders"
 copy_file "#{__dir__}/config/loaders/installers/react.js", "config/webpack/loaders/react.js"
 
-puts "Copying .babelrc to app root directory"
-copy_file "#{__dir__}/examples/react/.babelrc", ".babelrc"
-
 puts "Copying react example entry file to #{Webpacker::Configuration.entry_path}"
 copy_file "#{__dir__}/examples/react/hello_react.jsx", "#{Webpacker::Configuration.entry_path}/hello_react.jsx"
 
diff --git a/lib/install/template.rb b/lib/install/template.rb
index f51347b79..3f2533fba 100644
--- a/lib/install/template.rb
+++ b/lib/install/template.rb
@@ -1,21 +1,26 @@
 # Install webpacker
+puts "Copying webpack core config and loaders"
+directory "#{__dir__}/config/webpack", "config/webpack"
+directory "#{__dir__}/config/loaders/core", "config/webpack/loaders"
+copy_file "#{__dir__}/config/.postcssrc.yml", ".postcssrc.yml"
+
+puts "Copying .babelrc to app root directory"
+copy_file "#{__dir__}/config/.babelrc", ".babelrc"
+
 puts "Creating javascript app source directory"
-directory "#{__dir__}/javascript", "app/javascript"
+directory "#{__dir__}/javascript", "#{Webpacker::Configuration.source}"
 
 puts "Copying binstubs"
 template "#{__dir__}/bin/webpack-dev-server", "bin/webpack-dev-server"
 template "#{__dir__}/bin/webpack-watcher", "bin/webpack-watcher"
 template "#{__dir__}/bin/webpack", "bin/webpack"
+
 if !File.exist?("bin/yarn")
   puts "Copying yarn"
   template "#{__dir__}/bin/yarn", "bin/yarn"
 end
-chmod "bin", 0755 & ~File.umask, verbose: false
 
-puts "Copying webpack core config and loaders"
-directory "#{__dir__}/config/webpack", "config/webpack"
-directory "#{__dir__}/config/loaders/core", "config/webpack/loaders"
-copy_file "#{__dir__}/config/.postcssrc.yml", ".postcssrc.yml"
+chmod "bin", 0755 & ~File.umask, verbose: false
 
 if File.exists?(".gitignore")
   append_to_file ".gitignore", <<-EOS
diff --git a/lib/webpacker/configuration.rb b/lib/webpacker/configuration.rb
index 9c01e794d..67282c3cc 100644
--- a/lib/webpacker/configuration.rb
+++ b/lib/webpacker/configuration.rb
@@ -34,8 +34,12 @@ def output_path
       Rails.root.join(paths.fetch(:output, "public"))
     end
 
+    def source
+      paths.fetch(:source, "app/javascript")
+    end
+
     def source_path
-      Rails.root.join(paths.fetch(:source, "app/javascript"))
+      Rails.root.join(source)
     end
   end