The Federal Energy-Efficient Home Improvement Tax Credit expires soon—don’t miss out!

Cozy Home Performance, Western Massachusetts’ trusted spray foam insulation contractor, is reminding homeowners that time is running out to claim up to $1,200 in federal tax credits for qualifying insulation upgrades. This powerful incentive, part of the Energy Efficient Home Improvement Tax Credit (Section 25C), now ends December 31, 2025—moved up from the original 2032 deadline.

Why Upgrade to Spray Foam Insulation Now

Spray foam insulation is one of the most effective ways to cut energy bills, improve indoor comfort, and boost property value. By sealing air leaks and creating a continuous thermal barrier, spray foam keeps warm air inside during the winter and cool air inside during the summer—helping homeowners in the Pioneer Valley, the Berkshires, and across Western Massachusetts stay comfortable year-round.

How the Tax Credit Works

• 30% Savings, Up to $1,200: Claim 30% of the cost of qualifying insulation, including spray foam, up to $1,200 per year.
• Simple Process: File IRS Form 5695 with your federal tax return to receive the credit.
• No Income Limits: Any homeowner who installs qualifying insulation before the deadline can benefit.

Cozy Home Bonus

Schedule a free home energy-efficiency consultation with Cozy Home Performance and receive an extra $300 discountwhen your insulation upgrade is complete. Combine this with the federal credit for total potential savings of $1,500.

25C Tax Credit FAQs for Massachusetts Homeowners

What expenses qualify?

Only the insulation and air-sealing materials are eligible for the 30% credit. Labor costs for installation are not included, so your contractor should provide an invoice separating labor from material costs

Can I claim the credit on a new or second home?

No. The credit applies only to existing primary residences—not new construction, second homes, or rental properties

Do I need to owe federal taxes?

Yes. This is a non-refundable credit, meaning it can only reduce or eliminate taxes owed for the year the project is completed. Any unused balance cannot be carried forward

Can I combine this with rebates or state incentives?

Yes. You can pair the 25C credit with other rebates or utility incentives, but you must subtract any rebate amount before calculating the 30% credit

What is the annual limit?

The combined annual maximum for insulation, air sealing, and energy audits is $1,200

Are there specific standards for materials?

Yes. Insulation must meet the 2021 International Energy Conservation Code (IECC) R-value standards to qualify

For a deeper dive, download the full 25C Tax Credit FAQ Sheet (PDF).

Act Now to Lock In Your Savings

Appointments are filling quickly across Amherst, Northampton, Greenfield, and beyond. Don’t wait until the year-end rush — book your free consultation today.  Call 413-529-0200

Upgrade your home’s comfort and energy efficiency now—and capture up to $1,500 in combined federal and Cozy Home incentives before December 31, 2025.