Up to 30% tax credit on qualifying insulation and air-sealing costs

Homeowners who install insulation materials or systems that meet required energy-efficiency standards may claim a credit equal to 30% of the cost for those upgrades.

Maximum credit of $1,200 annually for “building envelope” improvements

Insulation and air-sealing fall under the home envelope category, which is capped at an aggregate credit of up to $1,200 per year for eligible improvements.

Must meet energy-efficiency standards and be your primary residence

The insulation improvements must comply with the applicable version of the International Energy Conservation Code (IECC) in effect, and the home must be your primary residence (not a rental property).

Act before the deadline — eligible installations must be placed in service by December 31 2025

The current window for claiming the tax credit for insulation and other qualifying energy-efficient home improvements ends at the end of 2025.