Insulation Tax Credit

Selby Insulation

Save Up to $1,200 on Insulation and Air Sealing Upgrades with a Federal Tax Credit

The Energy Efficient Home Improvement Credit is a federal tax credit equaling 30% of the total cost for a variety of energy efficiency home upgrades, including qualifying insulation and air sealing expenses.

There is an annual maximum credit of $1,200 for the category of upgrades that includes insulation. Tax credits for energy efficient home improvements allow you to reduce the amount of federal taxes you owe for the year home upgrades were made

We make the insulation tax credit easy—talk to Selby Insulation today to find out how much total money you can save on your project!

Available to anyone with federal tax liability
Can be combined with other incentives and insulation rebates
$150 credit for energy audits
Can be claimed in multiple years (but not for the same upgrade)

As the homeowner, you claim this tax credit directly when you file your taxes for the year in which the insulation was installed. Our itemized final invoice will include your tax-credit-eligible costs, making the process easy!

A note that says tax credits next to a calculator

Tax Credit FAQs

The insulation tax credit, also called the Energy Efficient Home Improvement Credit, allows eligible homeowners to receive a federal tax credit of up to $1,200 annually for upgrades like insulation and air sealing.

Selby Insulation can help ensure that your work qualifies for this insulation tax credit. Reach out today to see how much you could save with the insulation tax credit and other available incentives and rebates.

What Is a Tax Credit?

Homeowners sometimes ask us if home insulation is tax deductible. Tax credits and tax deductions are similar tax breaks, but they’re not the same. A tax credit reduces the amount of taxes you owe, while a tax deduction reduces your total taxable income. The insulation tax credit only applies to federal taxes, not state taxes.
How Does the 25C Insulation Tax Credit Work?

The 25C tax credit (25C refers to the relevant section of the IRS tax code) allows you to take a federal tax credit equaling 30% of the total cost for a variety of energy efficiency home upgrades, including qualifying insulation and air sealing expenses. There is an annual maximum credit of $1,200 for the category of upgrades that includes insulation.

Attic insulation, wall insulation, basement insulation, and crawl space insulation all qualify for the credit, as do many different types of insulation materials, as long as certain insulation levels are met. Selby Insulation will work with you to ensure that your insulation work is eligible.
What are the Benefits of the 25C Tax Credit for Insulation and Air Sealing?

Available to Anyone With Federal Tax Liability
If you pay federal taxes, you can claim your insulation tax credit! This is a national incentive available to any homeowner, unlike many rebate programs.

Can Be Combined With Other Incentives and Insulation Rebates
But if you do qualify for other incentives, the 25C tax credit is a great opportunity for additional savings, making upgrading your home even more affordable.

$150 Credit for Energy Audits
If your eligible tax credit for insulation and air sealing work doesn’t reach the $1,200 annual maximum, you can also take a 30% credit—with a limit of $150—for any energy audit related costs.

Calculated Separately From Heat Pump Upgrades
The 25C homeowner tax credit covers a number of different energy-efficiency upgrades for your home, and insulation and air sealing upgrades are in a separate category from heat pump HVAC systems and heat pump water heaters. This means that you can take both a $1,200 insulation tax credit and a $2,000 heat pump tax credit in the same year, for as much as $3,200 in total tax credit savings!
How Do I Claim My Tax Credit?

Claiming your tax credit for insulation and air sealing upgrades is straightforward:

1. Verify Eligibility: Selby Insulation will verify with you that the insulation work we’ve done for you meets the criteria for tax credit eligibility.

2. Keep Your Receipts: We will also provide you with an invoice breaking down the tax-credit-eligible portion of your work. You’ll need this when you or your accountant goes to file your taxes for the year in which work was done on your home.

3. File IRS Form 5695 or consult a Tax Professional:* When you file your taxes, remember your tax credit!

*At Selby Insulation, we have a tax professional prepare our taxes, and recommend that you do, too. Our goal is to be as helpful as possible in ensuring you get your tax credit, but we’re experts in insulation, not taxes!