If you suspect your home may be under-insulated, now is the time to find out. New federal legislation means the insulation tax credit worth up to $1,200 is ending sooner than expected—and the clock is ticking.
What Is the Insulation Tax Credit?
The Energy Efficient Home Improvement Credit, commonly referred to as the insulation tax credit, was originally set to run through 2032. However, this credit has been eliminated after the 2025 tax year as part of the One Big Beautiful Bill, signed into law on July 4. The Energy Efficient Home Improvement Credit will now expire on December 31, 2025.
How can I qualify for the insulation tax credit?
To qualify, your insulation project must be completed (not just scheduled) by the end of this year so that you can claim the credit when you file your 2025 taxes. Any weatherization work finished after December 31 will not be eligible.
What's at Stake?
The Energy Efficient Home Improvement Credit offers up to $1,200 in federal tax credit savings. This is a dollar-for-dollar credit on your federal tax return. So, if you owe taxes, it directly reduces the amount you owe—but only if your insulation work is finished before 2026.
The Energy Efficient Home Improvement Credit helps offset the cost of insulation and air sealing upgrades, also known as weatherization. These improvements don’t just lower your energy use, they also:
- Improve home comfort by creating more even temperatures room-to-room
- Reduce strain on your HVAC system
- Lower monthly heating/cooling expenses
- Boost indoor air quality
Why Act Now?
Our fall schedule is filling up fast. On top of the usual ramp-up in weatherization projects as homeowners prepare for the cold months ahead, we’re also seeing an increase in demand from homeowners looking to lock in their insulation projects before the credit disappears.
If you’re hoping to take advantage of the tax credit, waiting could mean missing out. The sooner you schedule your no-cost Home Energy Assessment to start the process, the more likely we can complete your work before the December 31 deadline.
How Can HomeWorks Help?
Here at HomeWorks Energy, we have helped thousands of Massachusetts homeowners and renters make energy-saving upgrades. With over 200,000 no-cost Mass Save assessments under our belt, we’re the largest home performance contractor and certified Mass Save® partner in the commonwealth.
Our team of Home Energy Specialists will guide you through the process every step of the way:
- Recommend qualifying insulation and air sealing solutions backed by Mass Save benefits, including 100% off air sealing and 75-100% off insulation
- Provide a clear, itemized invoice for tax documentation
- Help you explore additional incentives through Mass Save to help you save even more
Don’t Leave Your $1,200 Insulation Tax Credit on the Table
It’s not just about taking advantage of a valuable tax credit; it’s about making your home more efficient, comfortable, and affordable to heat and cool.)
Call (781) 305-3319 or schedule your no-cost Home Energy Assessment online today.
We’ll help you determine what upgrades make sense for your home and make sure you don’t miss this opportunity to maximize your savings.
The assessment typically takes two to three hours and includes a health and safety check, a custom home energy report, and on-the-spot installation of no-cost, energy-saving devices like smart thermostats.
