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Short answer: The federal insulation tax credit ended for work installed after Dec 31, 2025. In 2026, attic insulation is still one of the most rebated upgrades: many electric and gas utilities pay rebates for insulation and air sealing, state HEAR programs cover insulation, air sealing and ventilation up to $1,600 for income-eligible households, and the Weatherization Assistance Program does it free for low-income homes.
See what applies at your address. Enter your ZIP and the finder shows your state's rebate status and your local utility rebate lookups.
Find rebates by ZIP codeInsulation money in 2026
| Source | Status (as of Oct 13, 2026) | Amount | Income limit |
|---|---|---|---|
| Federal 25C credit | Ended for installs after Dec 31, 2025 | Was 30% of materials, within $1,200 a year | None |
| Utility rebates | Common | Set by each utility, often per square foot or a share of cost | Usually none. Some pay more to income-qualified customers. |
| HEAR (state-run) | Open in some states | Up to $1,600 for insulation, air sealing and ventilation | Under 150% of area median income |
| HOMES (state-run) | Open in a few states | $2,000 to $8,000 depending on savings and income | None, more for lower incomes |
| Weatherization Assistance Program | Ongoing | Free work | 200% of poverty or state LIHEAP limit |
Sources: IRS, Rewiring America (HEAR caps), Rewiring America (HOMES tiers), DOE.
What utility insulation rebates usually require
Each utility writes its own rules, but they rhyme. Expect most of these:
- A starting level. Rebates often apply only if your existing attic insulation is below a set R-value, measured by the contractor.
- A target level. You insulate up to a minimum R-value for your climate.
- Air sealing first. Many programs require it or pay extra for it.
- A participating contractor and before-and-after photos or a depth measurement.
- Your heating fuel. Electric and gas utilities may each pay for the part of the savings on their fuel.
Find your program in the ENERGY STAR Rebate Finder or DSIRE, or enter your ZIP in our home energy rebate finder. Our guide to utility energy efficiency rebates explains the search.
HEAR and HOMES for insulation
Under HEAR, insulation, air sealing and ventilation share one cap of up to $1,600. Low-income households can get up to 100% of the cost covered and moderate-income households up to 50%, up to the cap. HOMES pays on modeled energy savings: under federal guidance, a 20% to 35% savings project can earn up to $2,000 (or $4,000 for low-income homes), and 35% or more up to $4,000 (or $8,000), never more than a set share of the cost. Insulation plus air sealing is often the backbone of a HOMES project. Your state sets the final numbers. See which states are taking applications.
Free insulation for income-qualified homes
If your household is at or below 200% of the poverty guidelines, or gets SSI, the Weatherization Assistance Program can insulate and air seal for free after an energy audit. Expect a waitlist.
Claiming 2025 insulation on your taxes
If your insulation went in during 2025, the 25C credit still applies on your 2025 return: 30% of materials (not labor), within the $1,200 annual limit. Insulation and air sealing were the only items that didn't need a manufacturer QMID. The material had to meet the IECC standard in effect at the start of 2023 for 2025 installs. Use Form 5695. More in our 25C credit explainer.
DIY or contractor?
| DIY | Contractor | |
|---|---|---|
| Rebate eligibility | Some utilities allow it; HEAR and most programs don't | Required by most programs |
| Air sealing quality | Hard to do well without a blower-door test | Often tested before and after |
| Safety checks | You handle knob-and-tube wiring, vermiculite and bath fan venting | Contractor should flag these |
Insulating before a heat pump can mean a smaller, cheaper system; see heat pump rebates. Comparing it with new windows? Our window and door rebate guide explains why insulation usually comes first. For attic work, start with local roofing and attic contractors and ask whether they're enrolled in your utility's program.
Frequently asked questions
Is there a tax credit for insulating your attic?
Not for 2026 work. The 25C credit covered 30% of insulation material costs within a $1,200 annual limit, but only for installs through Dec 31, 2025. Claim 2025 work on your 2025 return.
Is the insulation tax credit going away?
It already has. The One Big Beautiful Bill Act ended 25C for property placed in service after Dec 31, 2025. Rebates from utilities and state HEAR or HOMES programs remain.
How much insulation can I claim on my taxes?
For 2025 installs, 30% of the cost of qualifying insulation and air sealing materials, labor excluded, counted within the $1,200 annual limit shared with windows, doors and audits.
Does HEAR pay for attic insulation?
Yes, where your state's program is open. Insulation, air sealing and ventilation together are capped at $1,600, for households under 150% of area median income.
Do I need an energy audit to get an insulation rebate?
Many programs require a contractor measurement or an assessment, and HOMES uses modeled savings, so some kind of audit is common. Some utilities offer free or discounted assessments.
Sources
- IRS: Energy Efficient Home Improvement Credit
- ENERGY STAR: Insulation tax credit
- Rewiring America: Electrification rebates
- Rewiring America: Efficiency rebates
- U.S. DOE: How to apply for weatherization
- ENERGY STAR Rebate Finder
Amounts and statuses were checked Oct 13, 2026. Programs change often, so confirm with the program before you sign a contract. Where we couldn't verify a figure, we say so instead of guessing.
