Residential Retrofit (25C)

The 25C Energy Efficient Home Improvement Credit may qualify you for up to a 30% tax credit (generally capped at $1,200) on the purchase of qualified insulation and air sealing products*

Tax Incentives Can Save You 30% (Up to $1,200) on Insulation and Air Sealing


Homeowners who have improved the insulation or air sealing of their main residence may be eligible for a tax credit. This credit is available annually, amounting to 30% of the material cost, generally capped at $1,200 per year.

How to Claim

Step 1

Purchase qualifying products from Knauf

To qualify for tax credits under the Inflation Reduction Act, it's necessary to purchase qualifying products. Knauf provides a manufacturer’s certificate for various insulation products, on which homeowners may generally rely.

Step 2

Keep track of documentation 

Keep track of documentation. Retain records of your expenditures, itemizing materials and labor, as a precautionary measure against potential audits.                                                                                      

Step 3

File the required tax form

When finalizing your income taxes, provide the necessary details on IRS Form 5695.                                                                                                                                                                                                           

Find the products you need at your local retailer or preferred distributor.
Determine the amount of insulation needed, receive product recommendations, discover where to buy, and calculate estimated project cost after tax savings. 
*This summary is intended to be a general overview of IRC §§ 25C, 45L, 179D and was developed for the convenience of our customers. It is not intended to and does not substitute for IRC §§ 25C, 45L, 179D, revenue procedures, revenue rulings, notices, announcements, any Treasury Regulations or any applicable federal law. Knauf Insulation (the “Company”) is not responsible for any errors or omissions contained in this summary. Applicable laws, regulations and Treasury guidance prevail over the content of this summary. Compliance with the requirements of IRC §§ 25C, 45L, 179D is the sole responsibility of the owner of any building for which the credit has been allocated. The Company is neither responsible for nor liable for an owner’s noncompliance. An owner should not rely solely on the Company to determine if the project and project records are in compliance. Use of this summary does not ensure compliance with IRC §§ 25C, 45L, 179D, Treasury regulations, or any other laws or regulations governing tax credits or the financial viability of any project. The Company accordingly strongly advises that all tax credit recipients consult their tax accountant, attorney or advisor as to the specific requirements of the tax credit program and IRC §§ 25C, 45L, 179D.