There’s never been a better time to upgrade your Maine home’s insulation—and save big while doing it.
Thanks to historically high incentives, including Efficiency Maine rebates and a federal insulation tax credit, homeowners have a once-in-a-lifetime opportunity to lock in savings. As Efficiency Maine’s leading insulation rebates contractor, we’ve never seen incentives like this—but these combined savings will only be around for another few months!
Here’s what you need to know about claiming your tax credit plus local rebates before the tax credit expires at the end of 2025.
What Is the Federal Insulation Tax Credit?
The Energy Efficient Home Improvement Credit is a federal incentive that allows homeowners to claim 30% of qualifying insulation and air sealing upgrade costs—up to $1,200—on their taxes.
- Up to $1,200 for qualifying insulation and air sealing costs
- Available for upgrades like attic and wall insulation, basement waterproofing*, and crawl space encapsulation*.
- As long as you owe federal taxes for the year in which your installation was completed, you can benefit!
- This tax credit ends on December 31, 2025, meaning you only have a few more months to qualify!
*Any insulation and air sealing measures that are a part of these upgrades would be eligible
How to Claim Your Insulation Tax Credit
As long as your insulation upgrade is completed by the end of this year, you’ll claim the tax credit when you file your taxes next April in 2026. A tax credit isn’t the same as a rebate, so you won’t get a check in the mail. Instead, the credit lowers the amount of federal taxes you owe the IRS.
If you’re looking for more information about the 25C tax credit, Efficiency Maine and the IRS are great resources:
- Efficiency Maine Insulation Incentives (Rebates & Tax Credits)
- Efficiency Maine Insulation Rebates Brochure
- IRS Energy Efficiency Home Improvement Credit Guidelines
To make sure you get every dollar you qualify for, we recommend checking in with your tax professional. They’ll help confirm your eligibility and calculate the credit using the details from your invoice.
The Insulation Tax Credit Ends This Year
At Evergreen, we’ve been helping homeowners in Portland, Rockland, and across Southern and Coastal Maine navigate rebates, tax credits, and financing for nearly two decades. We were there when the very first Efficiency Maine rebates and financing programs launched in 2009—and have helped more Mainers qualify for insulation and energy rebates than any other contractor since!
We’re following the incentive landscape closely, and here’s our advice: If you’re thinking about home energy upgrades, don’t wait.
Total incentives—including Efficiency Maine rebates, federal tax credits, and financing—are at an all-time high. But they won’t be for much longer.
If you’ve been paying attention to the news, the tax credit is ending early. In July 2025, Congress passed a law changing the insulation tax credit so that it now ends years earlier than originally scheduled. In order to qualify, you now have to complete your insulation upgrades before January 1, 2026 in order to claim your tax credit.
Acting now will guarantee your work is done in time to qualify! The longer you wait, the more you risk missing the boat on an extra $1,200 in savings.
Stack Even More Savings: Rebates + Tax Credits + Financing
Here’s the full picture of what’s available right now:
- Up to $8,000 in Efficiency Maine rebates for insulation and air sealing.
- Up to $1,200 in federal insulation tax credits.
- Financing through Efficiency Maine’s Green Bank or NEIF, with monthly payments as low as $50.
In total, you could save up to $9,200, and secure a great financing rate for the balance—and Evergreen makes it simple by guiding you through every step of the process.
Evergreen Home Performance: Your Local Guide to Big Savings
No two homes are alike, and no two energy upgrade plans should be, either. That’s why we start every project with a free consult, listening to your goals and inspecting your home to recommend the upgrades that will make the biggest difference.
Since 2006, we’ve worked with more than 4,500 homeowners across nearly 200 Maine cities and towns. Today, we’re here to help YOU by maximizing every dollar of available incentives while you make your home more comfortable and energy efficient.
