Does your house need better insulation? You can save $1,200 with the insulation tax credit, but you need to act soon. This tax credit will expire on December 31, 2025.
Home Energy Medics can help you take advantage of the federal tax credit for insulation while it’s still here. We’re the go-to local insulation company in Northern Virginia, DC, and Maryland for homeowners who want to make impactful improvements that save money.
Here’s what you need to know if you want to claim tax incentives for insulation before they disappear.
How the Insulation Tax Credit Works in 2025
The insulation tax credit (formally known as the Energy Efficient Home Improvement Credit) makes fundamental home upgrades, including insulation and air sealing, more affordable. It can help you achieve more home comfort and lower your energy bills year-round.
Here’s how it works.
Tax credits are a dollar-for-dollar reduction of your tax liability, meaning they reduce the amount of taxes you owe. Since the insulation tax credit comes from the federal government, it’s applied to your federal taxes owed, not state, and the reduction is seen once you file your annual taxes. It’s worth 30% of your qualifying expenses, up to $1,200, for certain energy efficiency home improvements, including insulation and air sealing.
The insulation tax credit is available for improvements made through the end of 2025. It will expire on December 31, 2025, and any improvements made after that date will not qualify. Start your insulation upgrade today so you don’t miss out!
What Improvements Qualify for the Tax Credit?
The insulation tax credit is part of the Energy Efficient Home Improvement Credit, which covers a wide range of energy-saving home improvements. You can claim a total of $3,200 when you make qualifying upgrades to your home.
Here’s a closer look at what’s covered:
Insulation & Energy Efficiency Improvements (up to $1,200)
You can claim a total of $1,200 (with limits that vary by service) for energy efficiency home improvements, including:
Electrical panels and components needed for HVAC upgrades
Heat Pumps (up to $2,000)
You can claim an additional $2,000 tax credit when you install a heat pump HVAC system or water heater, including:
Central heat pumps
Ductless mini split heat pumps
Why You Should Make Improvements Now
To claim the tax credit, you need to make qualifying upgrades before the end of 2025, which is coming up fast.
If you wait, you won’t be able to take advantage of savings. And that’s not all you’ll miss out on. Energy efficiency improvements like insulation save energy, which saves you money on your heating and AC bills. The longer you wait to make upgrades, the more money you're spending on energy bills every month.
The cost of waiting:
Missed opportunity to claim tax credit savings
Higher heating and cooling bills every season
Ongoing discomfort (drafty rooms, uneven temperatures)
More fossil fuel use
The benefits of upgrading now:
Save on upgrade costs with tax credits
Cut energy bills and keep money in your pocket
Improve home comfort (no more hot second floor or temperature fluctuations!)
Save energy and reduce your carbon footprint
Ready to Upgrade? Start with a Home Energy Audit
Ready to upgrade your home’s insulation or install a heat pump? Call the pros at Home Energy Medics. We’re not just an insulation installer or an HVAC company, but a true energy efficiency expert that uses building science to make holistic and long-lasting improvements to your home’s comfort and energy efficiency.
We recommend starting every insulation project with a home energy audit to get a full picture of how your home is operating. That information is vital because it will help you make the most effective improvements to your home and avoid making changes that have negative consequences. Our comprehensive energy audits give you a complete picture of your entire home and what can be done to improve it.