Insulation Rebates and Tax Credits

Covers 30% of the cost of qualifying insulation and air sealing materials, capped at $1,200 per year across the category. Materials only — labor for insulation does not count, which makes DIY unusually favorable here.

Keep receipts identifying the product and its R-value, and file Form 5695 with your return. Because the cap resets annually, splitting a large project across two tax years can double the credit.

Most gas and electric utilities offer attic and air-sealing rebates, often $0.15–$0.75 per square foot or a flat $250–$1,500, usually requiring a participating contractor and sometimes a pre-inspection or blower door test.

Many states also run home energy rebate programs with income-scaled amounts for whole-home efficiency projects. Check your state energy office before booking work.

Income-qualified households can get insulation and air sealing at no cost through the federal Weatherization Assistance Program, administered locally. Waitlists are common but the work is thorough.

Apply for the utility rebate first (it often requires pre-approval), have the work done by their approved contractor if required, then claim the federal credit on the remaining out-of-pocket material cost. Never claim a credit on money a rebate already reimbursed.