Federal 25C weatherization tax credits

[lsfinn]

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

[Bsch4477 · Accepted solution]

Yes, that counts. 

[NCperson]

@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]

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.