Energy tax credits have been a great incentive for improving home performance, but what happens now that these savings have expired? For homeowners in Chicago, Naperville, and surrounding areas, the end of federal insulation tax credits in 2026 does not mean the end of smart energy upgrades. In fact, insulation and air sealing remain two of the most valuable home improvements you can make, even without a rebate or credit.
Here’s why investing in your home’s efficiency still makes sense now that the 25C tax credit has ended.
1. Comfort is Priceless
Chicago winters are no joke. Between icy winds, freezing temperatures, and long stretches of gray skies, your home should be a warm and welcoming retreat. But poor insulation and air leakage can leave rooms drafty and unevenly heated, especially in older homes.
Adding insulation to your attic and basement, along with professional air sealing, creates a thermal boundary that keeps heated air inside and cold air out. You’ll notice a difference in every room with more consistent temperatures, fewer drafts, and a home that finally feels comfortable, no matter what the forecast says.
2. Long-Term Energy Savings
Even without the 30% tax credit, insulation and air sealing pay off through lower energy bills month after month. According to the Department of Energy, homeowners can save up to 15% on heating and cooling costs by properly insulating and air sealing their homes. With energy prices expected to rise, investing now means locking in future savings.
3. Protect Your HVAC System
A poorly insulated home forces your furnace and air conditioner to work harder to maintain a consistent temperature. This leads to:
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Higher utility bills
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More frequent repairs
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Shortened equipment lifespan
By tightening up your home’s envelope, insulation and air sealing reduce heating and cooling demand. Your HVAC system runs less often and more efficiently, leading to lower maintenance costs and longer system life.
4. Better Indoor Air Quality
Uncontrolled air leaks allow outdoor pollutants, allergens, and moisture into your home. This can worsen allergy symptoms and contribute to indoor mold or mildew. Air sealing helps keep unhealthy air out while maintaining better control over humidity and ventilation.
ARC Insulation uses diagnostic tools to identify hidden leaks and insulation gaps that may be affecting your home’s air quality. We help homeowners in the Chicago area breathe easier, especially during winter when windows stay closed for months.
5. Home Durability and Value
Proper insulation prevents ice dams, moisture buildup, and seasonal temperature stress on your building materials. Whether you plan to stay in your home long-term or sell in the near future, a well-insulated home is a smart investment.
Buyers are increasingly looking for energy-efficient homes. Even without a tax credit, upgrades like insulation and air sealing can improve your home’s marketability and appraised value.
Don’t Wait Around for Another Rebate
The benefits of insulation and air sealing remain strong. Comfort, energy savings, better air quality, and home durability all deliver lasting value.
Schedule a free home performance assessment with ARC Insulation today. We’ll help you understand exactly where your home is losing energy and recommend the right upgrades to get the results you want.
