25C: Home Envelope Tax Credit
Save money with home envelope upgrades and get a tax credit from the federal government.
Rebate Overview
Overview
The 25C Home Envelope Tax Credit is a tax credit that helps homeowners save on energy-efficient home improvements. It covers 30% of the cost of qualifying upgrades, such as insulation and air sealing products, up to a maximum of $1,200 per year. Please note that this credit applies only to materials costs, not labor. To qualify, products must come with a Manufacturer's Certification Statement. Eligible items include weather stripping, spray foam in a can designed to air seal, caulk designed to air seal, and house wrap. The credit is available for upgrades completed before December 31, 2025. To claim the credit, use Form 5695 on your 2025 tax return, filed in early 2026.
Benefits
Upgrading your home's insulation and air sealing can make your living space more comfortable and energy-efficient. These improvements can also increase your home's value and reduce your energy bills. By making these upgrades, you're not only enhancing your home but also contributing to a healthier environment by reducing energy consumption.
More Information
- Eligibility: The credit applies to your primary residence in the United States.
- Expiration Date: The credit is available for upgrades completed before December 31, 2025.
- Claiming the Credit: Use Form 5695 on your 2025 tax return, filed in early 2026.
- Manufacturer's Certification Statement: Ensure that qualifying products come with this statement to be eligible for the credit.
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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