Insulation Rebates & Tax Credits for 2026

Federal 25C Energy Efficient Home Improvement Credit (ended)

The federal 25C credit ended for insulation placed in service after December 31, 2025. Qualifying 2025 projects can still be claimed on the 2025 return (Form 5695).

Eligibility: U.S. primary residence (not new construction). Insulation must meet 2021 IECC standards.

Labor isn't covered for insulation — only the material cost on your contractor's invoice. Ask for an itemized invoice.

Federal HEEHRA Rebate (IRA)

Up to $1,600 for insulation + air sealing as part of a qualifying home electrification project (typically paired with a heat pump or electric water heater).

Income-qualified: ≤80% AMI gets 100% of project covered (up to caps); 80-150% AMI gets 50%.

Administered by each state — most opened applications in 2025 and 2026.

State and utility rebates

Almost every state has at least one major utility offering insulation rebates. See our state rebates pages for what's available in yours.

Amounts and eligibility vary widely by utility — confirm current terms with your provider.

How to stack programs

Use a contractor in your utility's rebate network so they file the rebate paperwork at install (instant discount).

Save the itemized invoice — utility and state rebate programs usually require it.

If you're income-qualified, check HEEHRA BEFORE starting the project — most programs require pre-approval.