Is there a federal tax credit for insulation in 2026?

Short answer: Not for work done in 2026. The IRS says you can claim the Energy Efficient Home Improvement Credit for improvements made through December 31, 2025 [1]. If your insulation went in during 2025, you can still claim it on your 2025 return.

What changed

The credit was ended early by Public Law 119-21, enacted July 4, 2025. The IRS: The credit will not be allowed for any property placed in service after December 31, 2025 [2]. The 2025 Form 5695 instructions say the same: You can't claim energy efficient home improvement credits for expenditures or property placed in service after December 31, 2025 [3].

If your job was done in 2025

• The credit is 30% of qualified expenses, up to $1,200 a year for this kind of work [1].
• Insulation and air sealing materials count: Any insulation material or system and air sealing material or system that is specifically and primarily designed to reduce heat loss or gain of a home [3].
• Labor does not. The IRS: Labor costs for installing building envelope components don't qualify for the credit [1].
• It is claimed on Form 5695 with your 2025 return [3].

Ask your tax preparer; we are an insulation contractor, not tax advisers.

What is still out there

Ohio's federal home energy rebates have not launched (status). Income-qualified households can get free weatherization through Ohio's Home Weatherization Assistance Program and, for Columbia Gas customers, WarmChoice. Your county page lists the local agency: service area.

More questions

Does labor count toward the 25C credit?

No. The IRS says labor costs for installing building envelope components, like insulation, do not qualify.

How much was the credit?

30% of qualified expenses, up to $1,200 a year for insulation, air sealing and similar improvements, for improvements made through December 31, 2025.