Insulating and air sealing your house is one of the best ways to save energy, which is good for the world and your wallet. The Environmental Protection Agency estimates that you can save an average of 15% on heating and cooling costs by insulating and air sealing your home!
What’s even better is that home insulation is one of the most affordable energy-saving upgrades you can make, thanks to government rebates and incentives. If you live in Massachusetts, you’re eligible for some of the best insulation incentives in the country!
Keep reading for a breakdown of the best Massachusetts insulation rebates, tax credits, and incentives available in 2025.
Federal Insulation Incentives
The federal government offers excellent incentives for home insulation and air sealing. These incentives are available to all United States households.
Energy Efficient Home Improvement Tax Credit (25C)
The Energy Efficient Home Improvement Credit (aka the insulation tax credit) is a federal tax credit worth 30% of eligible insulation and air sealing costs, with an annual limit of $1,200. You can claim the credit for any type of home insulation upgrade to your primary residence, including:
- Attic insulation
- Basement insulation
- Exterior wall insulation
The Energy Efficient Home Improvement Credit is commonly referred to as the insulation tax credit, but it applies to other energy efficiency improvements as well. You can claim the credit for heat pump heating and cooling systems, replacement windows, and more, though there are annual limits that vary by service. The 25C tax credit can be claimed every year you make qualifying home upgrades until 2032, so you can upgrade your insulation this year and receive your credit, then install new house windows the next year and claim the credit again.
How to Claim: You claim the Energy Efficient Home Improvement Credit when you file your federal taxes for the year you made your insulation and air sealing upgrades. To claim, simply complete and file Form 5695, Residential Energy Credits Part II with your federal tax return*.
*This material is for informational purposes only. It is subject to change and should not be relied upon for tax advice. We always recommend speaking with a tax professional before making tax-related decisions.
Insulation Rebates & Incentives for Massachusetts Homes
If you live in Massachusetts, you’re eligible for Mass Save® insulation rebates and incentives, which cover up to 100% of the cost of an insulation upgrade. Mass Save is a collaborative of Massachusetts’ electric and natural gas utilities and energy efficiency service providers that offers a wide range of incentives to help Massachusetts residents make energy efficient home improvements, including insulation upgrades.
Mass Save Insulation Rebates
All Massachusetts residents can save up to 75% on a home insulation upgrade with Mass Save insulation rebates. Income-eligible residents can receive additional rebates, up to 100% off insulation costs. Find out if you qualify for income-based offers.
Mass Save Air Sealing Incentives
Air sealing is a key part of any insulation upgrade. It stops air from leaking into and out of your home, which keeps your home warmer in the winter and cooler in the summer while saving energy. Air sealing also closes off entry points to keep moisture, pests, and air pollutants out of your home. Mass Save offers no-cost air sealing in addition to insulation rebates to help you make this important improvement to your home.
0% Interest HEAT Loan Financing
The Mass Save HEAT Loan is a financing opportunity that makes energy efficiency home improvements more affordable. Insulation and air sealing upgrades are eligible for 0% interest financing, up to $25,000.
How to Claim Mass Save Insulation Incentives: Neeeco can help you take advantage of Mass Save insulation rebates and incentives! To get started, schedule a no-cost Home Energy Assessment. During your assessment, we’ll identify energy-saving opportunities in your home and help you take advantage of the rebates and incentives you qualify for.
*Some restrictions apply. Offers are subject to change or cancellation. Visit MassSave.com for full details.
Insulation Installers You Can Trust in Massachusetts
Neeeco is an insulation and energy efficiency expert in Massachusetts with many years of experience improving local homes. We can help you save energy and reduce your heating and cooling bills with targeted insulation and air sealing upgrades for your home. We can also help you take advantage of generous rebates and incentives to reduce, and in some cases fully cover, the cost of your insulation upgrade. Don’t miss out on savings! Get started today with a no-cost Home Energy Assessment.