Insulating your attic is a top energy efficiency upgrade that reduces air leaks and lowers heating and cooling bills. This important home energy improvement typically pays for itself in 3-5 years through reduced utility costs. Homeowners can save even more through rebates and federal tax credits on insulation projects.

Can I Write Off Insulation on My Taxes?

Whether you are doing a DIY attic insulation project or a full-blown cellulose installation, the good news is that you can qualify for many local and state energy rebates and tax credits. These energy savings incentives help make the cost of attic insulation much more affordable.

The 25C federal energy efficiency tax credit is worth up to $1,200 and covers the cost of a number of different home improvement upgrades including insulation. The insulation credit applies to both new construction and existing homes.

Many types of insulation qualify for the insulation credit, including batt and blown-in insulation (as long as R-value requirements are met) and rigid foam insulation. Some air sealing products also qualify, such as caulking and canned spray foam. The key requirement is that qualifying materials meet the 2021 IECC energy efficient standards.

To claim the 25C energy tax credit, homeowners need to keep records of the qualified upgrade and all related expenses, and file IRS Form 5695 with their federal taxes. Homeowners are encouraged to consult with a professional energy expert or tax advisor, especially for complex insulation projects.

CEC Spray Foam
203 Cole Dr, Hampstead, NC 28443
‭(910) 833-4521‬