The federal Section 25C Energy Efficient Home Improvement Credit terminated December 31, 2025 under the One Big Beautiful Bill Act (Public Law 119-21). Cincinnati homeowners completing foam projects in 2026 do not qualify for the prior 30% credit. State and utility rebates remain (verify current offers).
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Section 25C was the federal tax code provision that covered 30% of qualifying insulation costs up to $1,200 per year for property placed in service before December 31, 2025. For a typical Cincinnati $5,000 foam project, the credit was up to $1,200 of out-of-pocket reduction. The One Big Beautiful Bill Act (OBBBA, signed July 4, 2025, Public Law 119-21) terminated the credit for property placed in service after December 31, 2025. Spray foam projects completed in 2026 do not qualify, regardless of when the homeowner signed the contract. What remains available to Cincinnati homeowners in 2026. (1) Ohio state-level energy efficiency programs (verify current offers with a CPA at the time of the project; the legislative landscape is volatile). (2) Duke Energy residential rebate programs (Cincinnati and Northern Kentucky electric customers). (3) CenterPoint Energy (formerly Vectren) gas residential rebates. (4) PACE-style assessments where available (limited in Ohio versus other states). (5) Employer benefit programs for energy-efficiency upgrades. The federal credit may be reinstated by future legislation; the political support for energy-efficiency credits cuts across both parties and prior termination provisions have been reversed. Cincinnati homeowners weighing foam in 2026 should not assume the credit is gone permanently, but should price their project assuming no federal credit applies. The ROI math remains favorable in Cincinnati Climate Zone 4A even without the Section 25C support: typical 4-8 year payback on utility savings alone for full retrofit packages.