Inflation Reduction Act: Home Envelope tax credit
Save money with home envelope upgrades and get a tax credit from the federal government.
Rebate Overview
Overview
The Inflation Reduction Act offers a tax credit for enhancing your home's energy efficiency. This credit covers 30% of the cost for qualifying improvements, up to a maximum of $1,200 per year. Eligible upgrades include insulation, air sealing, and certain energy-efficient windows and doors. Please note, this credit applies only to materials costs, not labor expenses.
Benefits
Upgrading your home's energy efficiency can lead to lower utility bills and a more comfortable living environment. These improvements also contribute to reducing greenhouse gas emissions, supporting a healthier planet.
More Information
- Eligible Improvements:
- Insulation materials or systems
- Air sealing materials or systems
- Exterior windows and skylights
- Exterior doors
- Credit Details:
- 30% of the cost for qualifying improvements
- Up to $1,200 per year
- Separate $2,000 annual limit for heat pumps
- Important Notes:
- Tax credit covers materials costs only, not labor
- Upgrades completed in 2025 and claimed on 2025 tax returns (filed in early 2026) should be safe
- The Trump administration has indicated that it wants to repeal parts of the Inflation Reduction Act, which may eliminate this tax credit starting with the 2026 tax year. QuitCarbon does not know whether this will happen, but we are monitoring closely, and will update this guidance as changes become clear
Details
- Expiration date: December 31, 2025
- Incentive type: Tax Credit
- Amount: $ 1,200
- Maximum Amount: $ 1,200
- Maximum Percent: 30%
- Category: Home Envelope
- Link: More details
Maximize Your Savings with QuitCarbon
QuitCarbon's free, expert guidance makes it simple and affordable to get fossil fuels out of our homes. We've helped thousands of homeowners with planning, installation, and rebates on upgrades like heat pumps, mini-splits, induction cooking, and EV chargers.
QuitCarbon is a certified B Corp and ENERGY STAR® partner that provides free assistance with clean energy upgrades.
Get Started Today
QuitCarbon will maximize your cost savings with holistic planning, guidance on rebates, introductions to vetted contractors, and expert bid reviews.
Click the button below to create your Home Profile and get started.
Questions? Comments?
We're here to support you through every step of the process — all for free! Please don't hesitate to get in touch!