If you’ve heard about a federal tax credit for insulation in 2026, the news has changed. The federal Energy Efficient Home Improvement Credit ended on December 31, 2025. People often called it the “25C” credit. It gave homeowners up to $1,200 a year. The credit covered insulation and air sealing. It applied to work done through the end of 2025. After that date, it’s done.
Here’s what didn’t end. Virginia still has rebate programs for insulation. So does Dominion Energy. The savings picture in 2026 is smaller than it was a year ago. But it’s not empty. Below is what’s out there right now for Virginia Beach homeowners. As always, ask a tax pro about your own taxes. Level Home Pros, LLC installs insulation. We don’t file taxes. Want a quote on insulation services in Virginia Beach? Call 757-834-2059.
What Changed: The Federal 25C Credit Ended December 31, 2025
The big change came on July 4, 2025. That’s when Public Law 119-21 was signed. The law is also called the OBBBA. That stands for the One, Big, Beautiful Bill Act. It sped up the end date for several federal energy credits. The 25C credit was one of them.
Per IRS Fact Sheet 2025-05, the 25C credit “will not be allowed for any property placed in service after December 31, 2025.” That’s the official line. If your insulation work was done by December 31, 2025, you can still claim the credit. You’d file that claim on your 2025 return. You file that return in 2026. Work done in 2026 does not qualify. Talk to a CPA before filing if your timing is close to the cutoff.
Virginia’s Home Energy Rebate Programs
Virginia has two federally funded rebate programs. They’re called HOMES and HEAR. The state energy office runs them. The office is called Virginia Energy. The OBBBA law did not end these programs. They’re still active. Both are based on income. Both apply to specific energy upgrades. Insulation and air sealing are on the list.
Insulation Coverage Under HEAR
The HEAR program covers insulation, air sealing, and ventilation. Up to $1,600 per household. That’s per household, not per project line. The full HEAR cap goes higher. Up to $14,000 across all eligible upgrades combined. That bigger cap is for households at or below 80% of the Area Median Income.
Income-Based Eligibility
Eligibility ties to your household income. The benchmark is the Area Median Income. The short form is AMI. AMI changes by county and household size. The biggest rebates go to households at or below 80% AMI. Households between 80% and 150% AMI get smaller rebates. Households above 150% AMI are not eligible for HEAR.
Dominion Energy Virginia Programs
Dominion Energy is the main electric utility for most of Hampton Roads. They run their own rebate programs. Those programs work apart from federal or state ones. Their offers change. So we won’t list specific dollar amounts here. The current list of upgrades, eligibility, and rebate amounts is on the Dominion website.
What we usually see: home energy assessments, smart thermostat rebates, and HVAC tune-up rebates. Insulation rebates from utilities tend to come and go. Worth a phone call to your account rep before you start a project. The rebate line on your bill is a good place to start.
Stacking Rebates with Utility Incentives
You can usually combine federal rebates with utility rebates on the same project. There are rules. The total can’t go over project cost. Each program’s own rules apply. The main limit: you can’t use two programs to pay for the exact same measure. For example, you can’t use both HEAR and HOMES to pay for the same insulation install. But you can use HEAR for insulation. And a Dominion rebate for a smart thermostat at the same time. That works.
How to Apply for Virginia’s Home Energy Rebates
All the application details live on the Virginia Energy website. Program status. Approved contractors. Income documentation. The Virginia Energy Home Energy Rebates FAQ is the official source. Programs run through approved contractors. Make sure your installer is enrolled before you start work you plan to claim.
What Doesn’t Qualify
A few things to flag before you assume your project qualifies. First, the work usually has to be done by an enrolled contractor. DIY work doesn’t qualify. Second, the rebate covers materials and qualifying labor. Not every line item. Third, retroactive claims for work done before the program launched in your area aren’t always allowed. Fourth, new construction usually doesn’t qualify for the Home Efficiency Rebate program. It’s for retrofits.
Bottom Line for Virginia Beach Homeowners
The 25C credit is gone for new work after December 31, 2025. Virginia’s HEAR program is still active. It covers up to $1,600 for insulation, air sealing, and ventilation for income-qualified households. Dominion Energy runs its own rebates. Stacking is usually allowed within the rules. The savings picture changed. But it’s not empty.
This article is general information. It’s not tax or legal advice. For your own situation, talk to a CPA or tax pro. For an insulation quote that factors in any rebates you may qualify for, call 757-834-2059.
Frequently Asked Questions
Is there still a federal tax credit for insulation in 2026?
No. The federal Energy Efficient Home Improvement Credit, also called Section 25C, ended on December 31, 2025. Work done in 2026 does not qualify for that credit. Work done before the end of 2025 can still be claimed on a 2025 return when you file in 2026.
What insulation rebates does Virginia offer in 2026?
Virginia runs the HEAR program. It covers up to $1,600 for insulation, air sealing, and ventilation for income-qualified households. Total HEAR rebates can go up to $14,000 for households at or below 80% of Area Median Income. The state runs the program through Virginia Energy.
Can I combine Virginia state rebates with Dominion Energy rebates?
Usually yes. State HEAR rebates and utility rebates can be stacked on the same project. The total can’t go over project cost. And you can’t apply both to the exact same measure. Program rules apply. Confirm before you commit.
What documentation do I need to claim a Virginia Home Energy Rebate?
Documentation rules come from Virginia Energy. You’ll usually need proof of income, an enrolled contractor, itemized invoices, and product info for the materials. Check the Virginia Energy Home Energy Rebates FAQ for current rules.
Does the Virginia HEAR rebate cover spray foam and crawl space encapsulation?
HEAR covers insulation, air sealing, and ventilation up to $1,600. Spray foam used as insulation usually qualifies. Crawl space encapsulation is more complex. It’s a moisture-control system, not just insulation. Some pieces qualify. Some don’t. Ask your contractor and confirm with Virginia Energy before you assume coverage.
Is the HEAR rebate available to all Virginia homeowners?
No. HEAR is income-based. Households at or below 80% of Area Median Income get the biggest rebates. Households between 80% and 150% AMI get smaller rebates. Households above 150% AMI are not eligible for HEAR.