As of July 2026 there is no federal tax credit for insulation. The 25C Energy Efficient Home Improvement Credit expired on December 31, 2025. What remains in Utah County is the Rocky Mountain Power wattsmart rebate, worth $0.10 per square foot on attic insulation and up to $0.65 per square foot on walls and floors. Utah Valley Foam is an independent insulation referral service covering Utah County, and this page lays out what is actually available now rather than what used to be.
The Federal Insulation Tax Credit Is Gone
If you have read elsewhere that you can claim 30 percent of your insulation cost up to $1,200, that information is out of date. It was true. It is not true now.
The 25C Energy Efficient Home Improvement Credit was originally scheduled to run through 2032. The One Big Beautiful Bill Act, signed July 4, 2025, moved the termination date forward. Any purchase or installation made after December 31, 2025 is not eligible.
In plain terms: insulation installed in 2026 earns no federal tax credit. If your project was placed in service on or before December 31, 2025, you may still be able to claim it on that tax year’s return. Talk to your tax preparer, not to an insulation contractor, about anything involving your return.
What Rocky Mountain Power Actually Pays
The wattsmart Homes program is the real remaining incentive for Utah County homeowners. What you get depends on whether your home is electrically heated or only electrically cooled:
| Insulation type | Electrically heated home | Electrically cooled home | Minimum R-value to qualify |
|---|---|---|---|
| Attic | $0.10 / sq ft | $0.10 / sq ft | Final R-49 or greater, existing no more than R-19 |
| Wall | $0.65 / sq ft | $0.25 / sq ft | R-13 or greater, exterior walls with no existing insulation |
| Floor | $0.65 / sq ft | $0.10 / sq ft | R-30 or greater, existing no more than R-11 |
Which Tier Does a Typical Utah County Home Fall Into?
This is the part most rebate pages skip, and it changes the number a lot. The generous wall and floor rates apply to electrically heated homes. Most homes in Utah County run a gas furnace with central air conditioning, which puts them in the electrically cooled column instead.
So a realistic attic project on a 1,500 square foot attic returns about $150. That is worth claiming, and it is not the kind of number that should drive the decision on its own. The energy savings are the reason to insulate. The rebate is a discount on top.
Who Qualifies
- Existing single family homes only. New construction and manufactured homes are excluded.
- The home must be more than 10 years old.
- You must buy electricity from Rocky Mountain Power in Utah.
- Electric heating or central cooling must serve at least 80 percent of the conditioned space.
- One rebate per insulation type, for the lifetime of the home. If a previous owner claimed the attic rebate, it is used up.
Note the attic threshold carefully: your attic has to end up at R-49 or better, and it must have started at R-19 or less. That is deliberate. The program pays to fix under-insulated homes, not to top up homes that are already close. It also happens to be the same R-49 figure Utah’s energy code uses for ceilings, which we break down on our Utah insulation code requirements page.
Does Spray Foam Qualify?
We are not going to tell you yes when we have not confirmed it. The wattsmart program documentation defines qualifying work by the final R-value achieved rather than by naming approved products, and it does not explicitly address spray polyurethane foam.
If the rebate is part of how you are budgeting the job, call Rocky Mountain Power and confirm product eligibility before you sign anything with any contractor. Any insulation company that promises you a rebate without that confirmation is guessing with your money.
Utah Insulation Rebate FAQ
Is there a tax credit for insulation in 2026?
No. The federal 25C Energy Efficient Home Improvement Credit expired December 31, 2025, and insulation installed in 2026 does not qualify for it. Utility rebates such as the Rocky Mountain Power wattsmart program are what remain.
How much is the Rocky Mountain Power insulation rebate?
Attic insulation earns $0.10 per square foot. Walls and floors earn $0.65 per square foot in an electrically heated home, or $0.25 and $0.10 respectively in a home that is only electrically cooled. Verified July 2026.
Why did the federal insulation credit end early?
The One Big Beautiful Bill Act, signed July 4, 2025, moved the 25C termination date forward from 2032 to the end of 2025. Only improvements placed in service on or before December 31, 2025 are eligible.
Does my attic qualify for the rebate?
Only if it currently sits at R-19 or less and the finished job reaches R-49 or better, in a single family home more than 10 years old on Rocky Mountain Power electricity. Most Utah County homes built before 2010 are under R-19 already, so the starting condition is usually met.
Can I claim a rebate if the previous owner already did?
No. The limit is one rebate per insulation type for the lifetime of the home, not per owner. If the attic rebate has been claimed on that address before, it is gone, though wall and floor rebates would still be separately available.
We quote the job on its own merits and let you handle the rebate paperwork with your utility, because that is the only honest way to do it. Call (801) 691-7136 for a straight number on your attic or crawl space, anywhere in Utah County.