25C 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: Home Envelope Tax Credit is a tax credit that helps homeowners improve their home's energy efficiency. This credit covers materials for insulation and air sealing, such as batts, rolls, blow-in fibers, rigid boards, expanding spray, and pour-in-place. It also includes products that reduce air leaks, like weather stripping, spray foam in a can, caulk, and house wrap, provided they come with a Manufacturer's Certification Statement. The credit covers up to 30% of the cost, with a maximum of $1,200 per year. Please note, the credit applies only to materials, not labor costs. To claim this credit, complete your upgrades before December 31, 2025, and file Form 5695 with your 2025 tax return.
Benefits
Upgrading your home's insulation and air sealing can make your living space more comfortable and energy-efficient. These improvements can lead to lower energy bills and a reduced carbon footprint, contributing positively to the environment.
More Information
- The credit covers 30% of the cost of eligible materials, up to a maximum of $1,200 per year.
- Eligible materials include various types of insulation and air sealing products.
- To qualify, products must come with a Manufacturer's Certification Statement.
- The credit applies only to materials, not labor costs.
- Upgrades must be completed before December 31, 2025, to be eligible.
- Claim the credit by filing Form 5695 with your 2025 tax return.
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
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