---
title: Is there a federal tax credit for insulation in 2026? | House Tite
url: https://housetite.com/insulation-questions/insulation-tax-credit-25c/
description: The 25C Energy Efficient Home Improvement Credit ended for work placed in service after December 31, 2025. What 2025 jobs can still claim, from the IRS.
updated: 2026-11-06
---

*Home > Insulation questions > Insulation tax credit (25C)*

Insulation questions

# 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](https://housetite.com/insulation-questions/ohio-home-energy-rebates/)). 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](https://housetite.com/areas/).

## 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.

### Get a price

Call or text a photo of your attic hatch or crawl space. We come out, measure, and give you one written price for the whole job.

Get a price

Call 740-590-5352

### Related

- [Ohio home energy rebates](https://housetite.com/insulation-questions/ohio-home-energy-rebates/)
- [Service area and local help](https://housetite.com/areas/)
- [Get a price](https://housetite.com/quote/)

## Sources

1. Internal Revenue Service. [Energy Efficient Home Improvement Credit (page last reviewed or updated April 28, 2026)](https://www.irs.gov/credits-deductions/energy-efficient-home-improvement-credit).
2. Internal Revenue Service. [FAQs for modification of sections 25C, 25D, 25E, 30C, 30D, 45L, 45W and 179D under Public Law 119-21 (Fact Sheet FS-2025-05)](https://www.irs.gov/newsroom/faqs-for-modification-of-sections-25c-25d-25e-30c-30d-45l-45w-and-179d-under-public-law-119-21-139-stat-72-july-4-2025-commonly-known-as-the-one-big-beautiful-bill-obbb).
3. Internal Revenue Service. [Instructions for Form 5695 (2025)](https://www.irs.gov/instructions/i5695).

[All insulation questions](https://housetite.com/insulation-questions/)

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**House Tite** · insulation contractor · Nelsonville, Ohio · call or text 740-590-5352 · sprayfoam@housetite.com · Monday to Friday, 8 AM to 5 PM Eastern. Weekends by appointment. Get a price: https://housetite.com/quote/ (or text a photo of the attic or crawl space to 740-590-5352).