Energy Efficient Home Improvement Credit with State Incentives

In 2024, I installed insulation in my home that would typically qualify for the federal energy efficiency tax credit. Initially, I thought I couldn’t claim the credit because I was reimbursed for the cost. However, while researching whether a door replacement would be eligible, I came across information from the IRS that made it seem like I could still claim the credit on the insulation, even though a state incentive covered the cost.

 

The organization that reimbursed me is a 501(c)(3) nonprofit, primarily funded by state and county grants, with a smaller portion coming from private donations (as best I can tell from their website and 501(c)(3) filings).

 

I'm unsure how to proceed in this situation and would appreciate some guidance.