Writing a check to the IRS hurts. If you found yourself owing federal taxes this year, you’re probably wishing you had a way to lower your tax bill.
We can’t help with what you just paid. But we can show you how to keep more money in your pocket next year.
By upgrading your New Mexico home’s insulation and air sealing in 2025, you could qualify for a $1,200 tax credit when you file next April. Plus, you’ll lower your monthly energy bills starting immediately.
Why This Timing Works:
- Tax pain is relatively fresh—you remember exactly how it felt
- You have the remainder of this year to complete the work
- Energy savings begin immediately
- No more surprise tax bills next April
The Energy Efficient Home Improvement Credit still allows homeowners to claim a percentage of qualifying insulation and air sealing costs, up to $1,200 for 2025.
The Psychology of Prevention
Taking action now prevents that sinking feeling you had last tax season. Next April, instead of writing another big check, you’ll smile knowing you’re keeping $1,200.
Now’s the Perfect Time to Take Action
Since you’re already thinking about taxes, today is the ideal moment to make a smart financial decision for next year.
Turn Tax Regret Into Smart Planning
By upgrading your insulation and air sealing this year, you’ll be ready to claim the tax credit when you file your 2025 taxes next April.
Why This Timing Works:
- Tax pain is relatively fresh—you remember exactly how it felt
- You have the remainder of this year to complete the work
- Energy savings begin immediately
- No more surprise tax bills next April
The Energy Efficient Home Improvement Credit still allows homeowners to claim a percentage of qualifying insulation and air sealing costs, up to $1,200 for 2025.
The Psychology of Prevention
Taking action now prevents that sinking feeling you had last tax season. Next April, instead of writing another big check, you’ll smile knowing you’re keeping $1,200.
Two Scenarios for Next Year:
Scenario A – Do Nothing:
- Owe $2,500 again in April 2026
- Keep paying high energy bills
- Home stays uncomfortable
- Feel regret again
Scenario B – Upgrade Now:
- Owe only $1,300 in April 2026
- Save $40+ monthly on bills
- Enjoy a comfortable home
- Feel smart about your decision
Which scenario sounds better?
Understanding the Insulation Tax Credit
Before you can benefit from the tax credit, you need to understand exactly how it works. Let’s break down the details in simple terms.
What the Tax Credit Offers
The tax credit is straightforward—you get to reduce your federal income tax by up to $1,200 for qualifying insulation and air sealing work.
Key Details:
- Claim 30% of qualifying costs
- Maximum $1,200, this year only
- Reduces federal taxes owed
- Must use professional installation
The credit applies to work completed in 2025. When you file your taxes in April 2026, you’ll use the credit and reduce your tax bill.
What Qualifies for the Credit
Not everything qualifies, but most insulation and air sealing work does. Understanding what counts helps you plan your project.
Qualifying Work:
- Attic insulation upgrades
- Wall insulation improvements
- Basement and crawl space insulation
- Air sealing throughout your home
- Materials must meet specific standards
Only the material costs qualify—labor doesn’t. But you must use a professional contractor to claim the credit at all.
How It Reduces Your Taxes
The credit works as a dollar-for-dollar reduction in what you owe. If your tax bill is $3,000 and you claim a $1,200 credit, you pay $1,800.
Important Limitation: You can only claim up to what you owe in federal taxes. If you owe $800, you can only use $800 of the credit. The remaining $400 doesn’t carry forward or get refunded.
But most homeowners who owe taxes have enough liability to use the full credit.
Beyond Tax Credits: Lower Bills Starting Immediately
The tax credit saves you money next April. But upgraded insulation starts saving you money this month—and every month after.
Monthly Energy Savings Add Up Fast
Poor or insufficient insulation forces your home’s heating and cooling system to work overtime. You’re paying to condition air that immediately leaks outside.
Typical Monthly Savings:
- Average home before upgrade: $200/month
- After insulation upgrade: $160/month
- Monthly savings: $40
- Annual savings: $480
Those savings continue for decades. Over 20 years, that’s $9,600 in your pocket instead of your utility company’s.
Increased Home Comfort
Beyond the financial benefits, proper insulation dramatically improves how your home feels every day.
Comfort Improvements:
- Consistent temperatures in every room
- No more freezing bedrooms in winter
- No more sweltering second floor in summer
- Fewer drafts and cold spots
- Better sleep in comfortable rooms
Many customers tell us the comfort improvement is even more valuable than the energy savings. There’s no price tag on feeling comfortable in your own home.
Additional Benefits
Upgraded insulation and air sealing deliver benefits that keep giving:
- Better indoor air quality (fewer outdoor pollutants)
- Quieter home (insulation blocks noise)
- Increased property value
- Extended HVAC system lifespan
- Reduced environmental impact
You’re not just saving money—you’re improving your quality of life.
Ready to start enjoying these benefits? Get your free home assessment →
How to Claim Your Tax Credit Next Year
Understanding the claiming process now helps you prepare and ensures that you receive t every dollar you’re entitled to.
Step 1: Work with a Qualified Contractor
The foundation of successfully claiming your credit starts with choosing the right contractor. They ensure proper materials and documentation.
What a Good Contractor Provides:
- Materials that meet tax credit requirements
- Professional installation
- Itemized invoice with eligible expenses
- Clear documentation of R-values
- Support during tax filing if needed
At Millers, we’re experienced with the insulation tax credit. We make sure everything is done right so your claim goes smoothly.
Step 2: Complete the Work Before December 31, 2025
Timing matters for tax credits. The work must be completed in 2025 to claim on your 2025 taxes filed in 2026.
Why This Matters:
- Complete by December 31, 2025
- Claim when filing in April 2026
- Save money just months later
Due to new legislation, this tax credit will expire December 31, 2025. Take advantage of it while you still can!
Step 3: Keep Your Receipts
When your work is finished, save your detailed invoice. You’ll need it when filing taxes.
Your Invoice Should Show:
- Itemized costs
- Materials are listed separately from labor
- Product specifications
- Date of completion
- Contractor information
We provide all this documentation automatically. Just keep it with your tax records.
Step 4: File IRS Form 5695
When filing your 2025 taxes next spring, you’ll complete Form 5695 to claim your credit.
Two Ways to File:
With a Tax Professional: Give them your invoice and tell them you’re claiming the Energy Efficient Home Improvement Credit. They’ll handle the rest.
Filing Yourself: Download Form 5695 from the IRS website, complete Part II, and include it with your return.
We recommend consulting a tax professional to ensure you claim all eligible deductions correctly.
Need help with documentation? We provide everything you need →
Take Action Now for Next Year’s Savings
You can’t change what you owed this year. But you can absolutely change what you’ll owe next year.
Don’t Make the Same Mistake Twice
Every month you wait is another month of:
- Paying more in energy bills
- Living in an uncomfortable home
- Missing out on available tax credits
- Regretting not taking action sooner
Breaking this cycle begins with one decision: to upgrade your insulation now.
Your Simple Next Steps
Getting started is easy. We handle the complicated details while you enjoy the results.
What Happens Next:
- Schedule your free home assessment
- Receive customized recommendations
- Review costs with all incentives included
- Choose financing if desired
- Schedule professional installation
- Get complete tax credit documentation
- Claim your $1,200 credit next April
The process is simple when you work with experienced professionals.
The Best Time to Act Is Now
You have a limited amount of time to complete your project before the 2025 tax year ends. Don’t wait until December—schedules fill up quickly.
Why Act Today:
- Secure your spot on our schedule
- Start saving on energy bills sooner
- Enjoy comfort through all seasons
- There’s still time before the year-end deadline
- Avoid the holiday rush
Next April, you’ll thank yourself for taking action today.
