Are there tax credits or rebates for spray foam insulation in 2026?

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The federal Energy Efficient Home Improvement Credit (Section 25C) paid 30 percent of qualifying insulation and air-sealing material costs, up to $1,200 a year. The One Big Beautiful Bill Act (Public Law 119-21) ended it, and the IRS guidance on that law states that the credit will not be allowed for any property placed in service after December 31, 2025. A job finished in 2025 can still be claimed on the 2025 return with Form 5695; a job finished in 2026 cannot, whenever the contract was signed. On the Ohio side, Duke Energy Ohio's broad residential rebates ended after House Bill 6 removed the state's utility efficiency mandate, and the electric security plan the PUCO approved in May 2025, which runs June 2025 through May 2028, funds a $7.2 million efficiency program aimed only at income-eligible customers. Households at or below 200 percent of the federal poverty guidelines, or receiving SSI, can also apply for the federally funded Weatherization Assistance Program, which Ohio delivers through local agencies and which can include insulation and air sealing. On the Kentucky side, Duke Energy Kentucky's filed Smart $aver tariff caps the incentive for thermal envelope improvements at $250 and requires a Duke Energy Kentucky participating trade ally to do the work, so confirm eligibility with the utility before the job is scheduled; its income-qualified Neighborhood Energy Saver program can add attic insulation and blower-door air sealing in the neighborhoods it targets. We have not found a statewide Ohio insulation credit in force for 2026. Keep the itemized invoice and the installer's certification of thickness and R-value anyway, because they document the upgrade at resale and for any program that opens later. Our 2026 incentives rundown walks through each option, and the cost FAQ shows how to price a project with no credit attached.