Are you eligible for a REBATE?

The Energy Efficient Home Improvement Credit is a federal tax credit designed to help homeowners offset the cost of making energy-saving upgrades to their homes. It was expanded under the Inflation Reduction Act of 2022 and allows you to claim 30% of the cost of qualified improvements made to your primary residence each year—up to a maximum annual credit of $3,200.

For insulation specifically, the credit applies to materials that reduce heat loss or gain, such as fiberglass, cellulose, and spray foam. Labor costs for installation generally don’t qualify for insulation, but the materials themselves do.

The credit resets annually, meaning homeowners can continue to make improvements over multiple years and claim the credit each time. To receive it, you simply claim the expenses on your federal tax return using IRS Form 5695.

By taking advantage of the Energy Efficient Home Improvement Credit, homeowners can significantly reduce the upfront cost of upgrading their insulation and other systems—improving comfort, lowering energy bills, and increasing the long-term value of their homes.