Federal 25C weatherization tax credits

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Federal 25C weatherization tax credits include $1200 that may be applied for "insulation and air sealing material." Does air duct insulation count?

Bsch4477Answer

Level 15

Expert Reviewed

Yes, that counts.

Bsch4477

Answer

Level 15

Expert Reviewed

Yes, that counts.

NCperson

Level 15

@lsfinn the tax credit is 30% of the cost; labor is not part of the credit calculation. And the maximum non-refundable credit is $1200.

the credit is considered a 'non-refundable credit'. In other words, the credit is 30% of your cost, but no more than the lesser of $1200 or Form 1040 / Line 22 before applying the credit.

Also, be mindful the credit expires on 12/31/25, You must have installed the material no later than this date to qualify for the credit. The credit is not available in the 2026 tax year.

Opus 17

Level 15

The problem with air sealing is that you can only consider the cost of the sealant, not labor. If audited, you need to be able to show some reasonable allocation. I can't find a price for the sealant alone, but it's basically Elmer's Glue, so I don't think the material is that expensive.