Spray Foam Insulation Rebates in 2026 (25C Credit Has Ended)
Federal insulation tax credits changed for 2026. Here is what is actually available now.
The federal 25C credit has ended
The Energy Efficient Home Improvement Credit (Section 25C), which previously offered 30% of insulation costs up to $1,200 per year, expired on December 31, 2025. Under the One Big Beautiful Bill Act signed in July 2025, it is no longer available for projects placed in service in 2026 or later.
If you installed qualifying insulation on or before December 31, 2025, you can still claim it on your 2025 federal return (IRS Form 5695). For work done in 2026 onward, the federal credit does not apply.
What is still available in 2026
- Utility rebates: Many electric and gas utilities still offer insulation and air-sealing rebates. Check your providers efficiency program.
- State & local incentives: Some states run their own weatherization or energy-efficiency programs. Search the DSIRE database (dsireusa.org) by ZIP code.
- Weatherization Assistance Program: Income-qualified households may receive free or subsidized insulation.
The bigger savings: lower energy bills
With the federal credit gone, the main financial case for spray foam is now energy savings. Sealing air leaks and raising R-value typically cuts heating and cooling costs enough to pay back the investment over several years. Check your local utility for current rebates to speed that up.
Tax rules change often. Confirm current programs with a tax professional and your utility before you buy.