LAS VEGAS (KTNV) — If your home is more than a decade old, you might be paying hundreds more in energy bills than necessary. But there’s good news—a federal tax credit could help homeowners save money while making their homes more energy-efficient and comfortable year-round.
Imagine blasting the air conditioner all summer, yet still struggling to keep your home cool. Or cranking up the heat in the winter, only to feel an icy draft creeping in. If this sounds familiar, experts say your home may be under-insulated.
Local contractor Jay Barseghyan is currently working on a home insulation project in the northwest valley, something he says many homeowners don’t think about until they start seeing higher energy bills.
“These lights, these outlets—every little gap lets air escape,” Barseghyan said. “Once we install them, we seal everything tight to keep the temperature inside where it belongs.”
According to him, it’s a problem more common than many realize.
“There was a lot of insulation work that needed to be done. If you point your camera here, you’ll see the light going through,” he said, highlighting areas where air was escaping.
According to the North American Insulation Manufacturers Association, 89% of homes in the U.S. are under-insulated, leading to wasted energy and higher costs.
“If your home is 10 years or older, it’s almost certainly under-insulated,” said Patrick Kiker, vice president of marketing and communications at NAIMA. “The best thing to do is check your attic. If there’s less than 12 inches of insulation or you feel drafts near windows, you definitely need more.”
And here in Southern Nevada, insulation isn’t just a winter necessity—it’s crucial for keeping homes cool in extreme heat.
“Insulation always helps in hot weather,” Kiker explained. “It’s all about slowing the transfer of heat. In the winter, you keep the heat inside, and in the summer, you keep the heat out.”
How the 25C Tax Credit Can Help
To help offset the costs of insulation upgrades, homeowners can now take advantage of the 25C Income Tax Credit, which covers up to 30% of energy-efficient home improvements, including insulation, with a maximum credit of $3,200 per year.
“Anybody who owns a home can qualify,” Kiker said. “Studies show that insulation and air sealing can reduce energy costs by 15 to 40%. That’s real savings, especially as electricity prices continue to rise.”
What Should Homeowners Do Next?
Experts recommend that homeowners start by checking their homes for thin attic insulation, drafts, or gaps around windows and doors. If in doubt, hiring an energy auditor can help identify where energy is being wasted. Many utility companies, including NV Energy, offer free energy audits to assist homeowners.
“The cheapest energy is the energy you don’t use,” Kiker said.
With financial incentives available, Barseghyan encourages homeowners to act sooner rather than later.
“If you're replacing all the insulation in your attic, the costs can add up,” he said. “But with this tax credit, homeowners can actually get money back.”
How to Apply for the Tax Credit
To claim the 25C Tax Credit, homeowners must include their insulation expenses when filing their federal taxes. If taxes have already been filed for 2024, an amended return can be submitted to take advantage of the credit.
For more details on eligibility, insulation options, and how to apply, visit insulationinstitute.org.
