“Use it or lose it”: Insulation tax credit could save you money but it expires soon
EL PASO, TX (KVIA)-- A little known tax credit could help homeowners stay cooler, save on energy bills, and even protect the power grid but it expires at the end of the year.
The 25C Tax Credit allows homeowners to receive up to $1,200 toward the cost of air sealing and insulation. Patrick Kiker with the North American Insulation Manufacturers Association (NAIMA) says it’s not just about comfort it’s also about efficiency.
“The most important thing it can do is reduce peak demand loads up to 7 to 10%. So when there’s extreme heat or cold, insulation can prevent those big spikes in energy use.”
Peak demand occurs during the hottest or coldest days, when thousands of homes are blasting the A/C or cranking the heat at once. Energy-efficient insulation reduces the strain on power grids—and on wallets.
The deadline to claim the tax credit is December 31st, 2025. To qualify, homeowners must upgrade with eligible insulation and provide documentation with their 2025 taxes.
How to claim:
- Hire a certified insulation contractor
- Save all itemized receipts
- Fill out IRS Form 5695 when filing taxes
