The federal Section 25C insulation tax credit ended December 31, 2025 (per the One Big Beautiful Bill Act, Public Law 119-21). Columbus homeowners completing foam projects in 2026 should ask their CPA about state and local utility rebates rather than the prior federal credit.
More detail
Section 25C of the federal tax code (Energy Efficient Home Improvement Credit) covered 30% of qualifying insulation costs up to $1,200 per year for property placed in service before December 31, 2025. The One Big Beautiful Bill Act, signed July 4, 2025, terminated the credit for property installed after that date. Spray foam projects completed and placed in service in 2026 do not qualify for Section 25C. Columbus homeowners weighing foam in 2026 should ask their CPA about: (1) any state of Ohio energy-efficiency tax credits or programs that may apply; (2) AEP Ohio and Columbia Gas of Ohio residential rebate programs (verify current offers before relying on them); (3) financing programs through PACE-style assessments where available; (4) employer benefit programs for energy-efficiency upgrades. The federal Section 25C credit may be reinstated by future legislation; check with a CPA at the time of your project.