If you were counting on the federal tax credit to help pay for attic insulation this fall, here is the plain truth: it is gone. The Energy Efficient Home Improvement Credit, known as 25C, ended for work placed in service after December 31, 2025.
Here is the better news. For Minnesota homeowners, the tax credit was never the biggest source of help. The utility rebates were, and those are alive and well for 2026. This guide covers what changed, what is still available, and exactly what it takes to qualify.
What Changed: The Federal 25C Credit Ended December 31, 2025
The 25C credit was worth 30 percent of the cost of insulation and air sealing materials, up to $1,200 per year, and it was originally scheduled to run through 2032. Legislation signed on July 4, 2025 moved the end date up to December 31, 2025. According to the IRS, improvements placed in service after that date no longer qualify. If your insulation was installed in 2025, you can still claim it on your 2025 return. If it is installed in 2026, there is no federal credit to claim.
What Is Still Available: Minnesota Utility Rebates
Minnesota law requires the state’s utilities to run energy conservation programs, which is why insulation rebates here have survived every change in Washington. The rebate comes from the utility that heats your home, and the two largest programs cover most of our service area.
CenterPoint Energy (2026 program)
For Minnesota homes heated with CenterPoint natural gas, the 2026 program pays:
- $750 for attic air sealing on its own
- $1,300 for attic air sealing combined with qualifying attic insulation
- No rebate for attic insulation installed without air sealing
To qualify, the attic must go from a pre-existing R-value of R-30 or lower to R-49 or higher, the air sealing must cover all accessible attic leaks including the access panel, plumbing and electrical bypasses, wall top plates, recessed lights, and other penetrations, and the work must be done by a CenterPoint Rebate Eligible Installer. Applications must be postmarked by December 31, 2026. Full details are on CenterPoint’s air sealing and insulation page.
Xcel Energy
For Xcel natural gas or electric heating customers, rebates are a percentage of the project cost:
- Attic insulation: 40 percent of cost, up to $1,200, when the attic goes from R-19 or lower to R-49 or higher
- Air sealing: 40 percent of cost, up to $600, when a blower door test shows at least a 15 percent reduction in air leakage
- Wall insulation: 40 percent of cost, up to $1,200, for empty wall cavities brought to R-11 or higher
Work must be installed by a participating insulation contractor, and Xcel also offers a $600 bonus when qualifying insulation and air sealing are followed by a qualifying heat pump within two years. Electric-only customers whose heat comes from another utility fall into a much smaller cooling-only tier. See Xcel Energy’s insulation and air sealing rebates for current terms.
Minnesota Energy Resources, Otter Tail Power, and others
Greater Minnesota utilities run their own versions of these programs, generally structured as a percentage of cost up to a cap, with their own R-value thresholds. Our Minnesota insulation rebates page keeps the current tables for each utility we work with.
What about the state Home Energy Rebates?
Minnesota is also preparing federally funded Home Energy Rebates for income-qualified households, known as HEAR and HOMES, which will include insulation and air sealing. As of the Department of Commerce’s June 12, 2026 update, the program had not launched, had no announced launch date, and will not pay for work completed before launch. If your household is at or below 150 percent of area median income, it is worth watching the Commerce Department’s Home Energy Rebates page. If not, there is no reason to wait.
How to Qualify: A Six-Point Checklist
- Know who heats your home. The rebate follows the heating fuel. Gas heat from CenterPoint means CenterPoint’s program; gas or electric heat from Xcel means Xcel’s.
- Check your starting point. CenterPoint requires existing attic insulation of R-30 or less, and Xcel requires R-19 or less, roughly eight inches or less of loose fill. Most pre-1990 attics qualify easily.
- Plan on air sealing. CenterPoint pays nothing for insulation-only projects, and Xcel’s air sealing rebate depends on a measured leakage reduction. Air sealing is not a hoop to jump through; it is the part of the job that makes the insulation work.
- Hit R-49 or higher. Both programs require a finished R-value of at least R-49. We typically recommend R-60 when the attic allows it.
- Use an eligible contractor. Both utilities require a rebate-eligible or participating installer, and CenterPoint states plainly that work done by anyone else does not qualify. RetroGreen Energy is a CenterPoint Rebate Eligible Installer and submits utility rebate paperwork for our customers.
- Get the paperwork in on time. CenterPoint’s 2026 applications must be postmarked by December 31, 2026, and they need both the signed application and the installer’s itemized invoice. We prepare and submit the paperwork for you.
Why the Air Sealing Requirement Works in Your Favor
Utilities require air sealing because insulation blown over a leaky attic floor underperforms. Warm air moving up through gaps around wiring, plumbing, top plates, and recessed lights carries heat straight through loose-fill insulation, and it is the same warm air that melts roof snow and forms ice dams. Sealing those bypasses first is what turns an attic insulation job into a comfort and ice-dam fix, not just a line on a rebate form. Our air sealing page explains how it is done, and our guide to how much attic insulation a Minnesota home needs covers the R-49 and R-60 targets.
Timing: Fall Fills Up Fast
Insulation calendars in Minnesota fill quickly between the first frost and the holidays, and CenterPoint’s December 31 postmark deadline means a project that starts late can miss the 2026 program year. Booking an assessment in September or October keeps both the schedule and the rebate on your side. Rebate checks typically arrive from the utility within six to eight weeks after the paperwork is submitted.
A free assessment confirms your current R-value, identifies the bypasses that need sealing, and shows the rebate you can expect right on the quote. Call (320) 252-8888, or (612) 276-5993 in the Twin Cities. Our attic insulation page covers the work itself.
Frequently Asked Questions
Is the federal insulation tax credit really gone for 2026?
Yes. The 25C credit ended for improvements placed in service after December 31, 2025. Work installed during 2025 can still be claimed on a 2025 tax return, but 2026 installations do not qualify.
Can I get a rebate for attic insulation without air sealing?
Not from CenterPoint Energy, which pays nothing for insulation-only projects in 2026. Xcel’s attic insulation rebate does not require air sealing, but the air sealing rebate is separate and is usually worth adding while the crew is in the attic.
How much can I get in total?
Up to $1,300 from CenterPoint for attic air sealing plus insulation, or up to $1,800 from Xcel for attic insulation plus air sealing, with wall insulation rebates available on top for homes with empty wall cavities. Your utility, your starting R-value, and your project cost determine the exact figure.
Do I have to use a specific contractor?
Yes. Both CenterPoint and Xcel require a rebate-eligible or participating installer, and work done by other contractors or as a DIY project does not qualify.
What if my attic already has more than R-30?
Then a CenterPoint insulation rebate is off the table, but the $750 attic air sealing rebate still applies if air sealing is done, and air sealing is often the missing piece in an attic that already has decent insulation.
Should I wait for the state Home Energy Rebates?
Only if your household is income-qualified and you can afford to wait for a program with no announced launch date. Those rebates will not be paid retroactively, and the utility rebates are available now.
Chris Froelke, Owner, RetroGreen Energy. Chris is a Minnesota Licensed Building Contractor (#631810) and BPI Certified Building Analyst. RetroGreen Energy is a CenterPoint Energy Rebate Eligible Installer and submits utility rebate paperwork on behalf of its customers.
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