Save Up to $1,200 on Your Insulation Project
The federal government wants to help you improve your home's energy efficiency—and they're offering significant tax credits to make it happen. Through December 31, 2025, you can claim 30% of your insulation costs back as a tax credit, up to $1,200 annually.
Whether you're upgrading attic insulation, encapsulating your crawl space, or sealing air leaks, these improvements likely qualify for this valuable tax credit. Here's everything you need to know.
Energy Efficient Home Improvement Credit
Available: January 1, 2023 – December 31, 2025
Credit Amount: 30% of product cost, $1,200 maximum amount credited.
What This Means:
- You get back 30% of your total insulation project costs
- Includes both materials AND labor
- Maximum credit of $1,200 per year
- Can claim every year through 2025 for new eligible improvements
Example Savings:
- $3,000 project = $900 tax credit (30%)
- $4,000 project = $1,200 tax credit (30%, hits maximum)
- $5,000 project = $1,200 tax credit (maximum annual credit)
Qualifying Insulation Products & Services
Typical bulk insulation products can qualify, such as batts, blow-in fibers, rigid boards, and spray foam.
Our Qualifying Services:
✓ Spray Foam Insulation (open-cell and closed-cell)
✓ Blown-In Insulation (fiberglass and cellulose)
✓ Batt Insulation (fiberglass and mineral wool)
✓ Air Sealing (spray foam, caulk, weatherstripping, house wrap)
✓ Crawl Space Insulation (insulation components)
Requirements:
- Insulation and air sealing materials or systems that meet International Energy Conservation Code (IECC) standards
- Must be new materials (not used)
- Must have expected lifespan of at least 5 years
All of our insulation installations meet IECC standards and qualify for the federal tax credit.
Do You Qualify?
You can claim the credit if:
- The home is your primary residence (where you live most of the time)
- The home is located in the United States
- You’re improving an existing home (not new construction)
- The work was completed between January 1, 2023 and December 31, 2025
You CANNOT claim if:
- You’re a landlord improving a rental property you don’t live in
- It’s a second home (not your primary residence)
- It’s new construction
Business use of home:
- If you use up to 20% of your home for business: claim the full credit
- If you use more than 20% for business: credit is reduced proportionally
How to Claim Your Tax Credit
Step 1: Complete Your Insulation Upgrade We install qualifying insulation that meets all IECC standards and requirements.
Step 2: Keep Your Documentation We provide everything you need:
- Detailed invoice with installation date
- Material specifications and R-values
- Confirmation of IECC compliance
- Manufacturer certifications if required
Step 3: File IRS Form 5695 Claim the credits using the IRS Form 5695 when you file your taxes for the year the work was installed (not purchased).
Important: This is a nonrefundable credit, meaning it reduces your tax liability but doesn’t create a refund. If you owe less than $1,200 in taxes, you can only use the portion you owe. Unused credit cannot be carried forward.
Example: Install insulation in November 2025 → Claim credit on 2025 tax return filed in April 2026
Maximizing Your Tax Credit
Annual Limit: You can claim up to $1,200 annually for insulation, air sealing, windows, doors, and certain HVAC equipment combined. Heat pumps and heat pump water heaters have a separate $2,000 annual limit.
Strategy: It may be prudent to spread your improvements over a few years if you’re planning multiple upgrades. However, for most insulation projects, you’ll get maximum value by completing comprehensive work in one year:
Smart Combination (Single Year):
- Attic insulation + air sealing + crawl space encapsulation = Up to $1,200 credit
- Or combine insulation ($1,200 max) with heat pump installation ($2,000 max) for total $3,200 in credits
Local Utility Rebates
In addition to federal tax credits, some local utility companies offer rebates for insulation improvements. These vary by provider and can change throughout the year.
Georgia Power Customers: May qualify for a $250 rebate for attic insulation upgrades. Learn more about Georgia Power rebates →
Other Metro Atlanta Utilities: Check with your utility provider for available rebates:
- Cobb EMC
- Jackson EMC
- Sawnee EMC
- Walton EMC
- Other local providers
Search for rebates in your area →
We’ll help you research what’s available from your utility provider during your free evaluation.
Tax Credit FAQs
Have questions about the federal insulation tax credit? We've answered the most common questions about claiming your tax credit, from eligibility to documentation. Don't see your question here? Give us a call—we're happy to help.
Book a Free EvaluationCan I claim the tax credit and utility rebates for the same project?
Yes! However, public utility subsidies for buying or installing clean energy property are subtracted from qualified expenses when calculating your federal tax credit. Example: $5,000 project – $250 utility rebate = $4,750 × 30% = $1,425 federal tax credit.
What if I don't owe $1,200 in taxes?
The credit is nonrefundable—it can only reduce your tax liability to zero, not create a refund. If you owe $800 in taxes, you can claim $800 of the credit. The remaining $400 cannot be used or carried forward.
Can I claim the credit if I finance my project?
Yes. The credit is based on the total project cost, regardless of how you pay for it.
What documentation do I need?
Keep your detailed invoice from us showing the installation date, materials used, and total costs. We’ll provide all necessary documentation including IECC compliance confirmation. You’ll file IRS Form 5695 with your tax return.
Does the $1,200 limit apply to each type of insulation separately?
No. The $1,200 annual limit applies to all insulation, air sealing, windows, doors, and certain HVAC equipment combined. You can mix services (spray foam + blown-in + air sealing), but the total credit is capped at $1,200 per year.
What year do I claim the credit?
Claim the credit for the tax year when the work is installed, not when you pay for it. If installed in December 2025, claim it on your 2025 tax return filed in 2026.
Will this tax credit be extended beyond 2025?
The current program is authorized through December 31, 2025. We have no information about extensions. We recommend completing your project while the credit is guaranteed.
Do I need to submit documentation to the IRS with my return?
No, but keep all documentation with your tax records in case of an audit. We provide detailed invoices and specifications for your records.
Ready to Claim Your Tax Credit?
Don’t miss out on up to $1,200 in federal tax credits. Upgrade your insulation before the program ends December 31, 2025, and start saving on energy bills while you save on taxes.
Schedule your free evaluation and we’ll provide all the documentation you need to claim your credit.
✓ Free evaluation & tax credit guidance
✓ All qualifying work meets IECC standards
✓ Complete documentation provided
✓ Veteran-owned quality