Did the Federal Tax Credit for Duct Sealing Expire?
Yes. The federal Energy Efficient Home Improvement Credit under Section 25C ended for property placed in service after December 31, 2025.
During 2025, qualifying insulation and air-sealing materials or systems could potentially receive a federal tax credit subject to applicable limits and IRS requirements. That federal incentive is no longer available for improvements placed in service in 2026 or later under the current law.
The former Section 25C Energy Efficient Home Improvement Credit ended for property placed in service after December 31, 2025.
What Changed After December 31, 2025?
The Energy Efficient Home Improvement Credit had previously been available for qualifying residential energy-efficiency improvements.
Federal legislation enacted in 2025 accelerated the termination of the Section 25C credit. Current IRS guidance states that the credit is not allowed for property placed in service after December 31, 2025.
Homeowners who completed qualifying improvements during 2025 may still need the former rules when preparing a 2025 federal tax return.
What Did the Former Air-Sealing Credit Cover?
Under the 2025 rules, certain qualifying insulation materials or systems included air-sealing materials or systems that met applicable energy-efficiency requirements.
The credit was generally calculated as a percentage of eligible costs, subject to the annual limits that applied to this category of home improvements.
Importantly, labor costs were not included when calculating the former credit for qualifying insulation and air-sealing materials or systems.
That means the total price of a duct-sealing project and the amount potentially eligible for the former federal credit were not necessarily the same.
Did Aeroseal Automatically Qualify for a 30% Tax Credit?
No duct-sealing project should have been described as automatically qualifying simply because Aeroseal was used.
Eligibility depended on IRS requirements, the type of property, applicable energy-efficiency standards, qualifying costs, and the taxpayer’s individual circumstances.
Homeowners should rely on the applicable IRS rules and a qualified tax professional when determining whether a 2025 project qualifies.
What If Aeroseal Was Installed in 2025?
A homeowner who had qualifying work completed and placed in service during 2025 may still want to determine whether any portion of that project qualifies when preparing the 2025 federal tax return.
Eligibility should be based on the actual IRS requirements that applied to the improvement and the documentation from the project.
Safety King cannot determine an individual homeowner’s tax eligibility. Homeowners should review current IRS guidance or speak with a qualified tax professional before claiming a credit.
Is There a Federal Aeroseal Tax Credit in 2026?
The former Section 25C Energy Efficient Home Improvement Credit is not available for property placed in service after December 31, 2025.
That does not necessarily mean there will never be another federal, state, utility, or local incentive related to energy efficiency.
Incentive programs can change independently, so homeowners considering duct sealing should check current programs rather than relying on older articles advertising the 2025 federal tax credit.
Should You Still Consider Duct Sealing Without the Tax Credit?
A tax incentive should not determine whether a duct system actually needs sealing.
The first question is whether meaningful duct leakage exists.
Supply-side leaks can allow heated or cooled air to escape before it reaches the intended rooms. Return-side leaks can pull air into the HVAC system from unintended areas.
Duct leakage testing can help determine whether leakage is significant and whether sealing is appropriate.
Aeroseal may be useful for many smaller leaks in joints, seams, and connections, particularly when those areas are concealed behind finished surfaces.
Aeroseal is not a substitute for repairing disconnected, crushed, severely damaged, or otherwise defective ductwork.
Frequently Asked Questions
Did the 30% federal home energy tax credit end?
Can I claim the credit for Aeroseal installed in 2026?
What if my duct sealing was completed in 2025?
Did the former credit cover the entire duct-sealing bill?
Is Aeroseal still useful without a federal tax credit?
Considering Duct Sealing in Michigan?
The federal incentive has changed, but the basic decision has not: find out whether the duct system actually leaks before deciding to seal it. Safety King can evaluate duct leakage and determine whether Aeroseal is appropriate for the system.