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As an insulation company serving New Mexico since 1985, Millers understands the importance of maintaining energy efficiency and comfort in your home or business. To help offset the insulation installation or upgrade cost, federal and local tax credits and rebates are available to homeowners and businesses in New Mexico.
Insulation Rebates
Upgrading your home insulation is an effective way to reduce energy costs and increase comfort. In New Mexico, homeowners have access to rebates and incentives that can significantly offset the upfront costs of an insulation installation or upgrade.
The New Mexico Energy Efficiency Program provides rebates to help residents make energy-saving improvements to existing homes. These rebates cover insulation upgrades for attics, walls, crawl spaces, and other areas of the home. Rebates may vary based on the type of insulation installed and the area of the home being treated but can reach up to $0.60 per square foot.
To qualify for these state insulation rebates, homes must be an existing structure receiving service from a New Mexico utility company. Both owner-occupied and rental properties are eligible. The program also requires that insulation work be completed by a participating contractor to ensure proper installation techniques and materials are used.
In addition to rebates, the program offers low-interest financing options through the New Mexico Energy$mart program to help make insulation projects more affordable. Details on rebate amounts, financing, and how to get started can be found on the New Mexico Energy Efficiency Program website.
Along with state incentives, many utility companies in New Mexico have their own insulation rebate programs for customers. These utility rebates can often be combined or “stacked” with the state rebates for increased savings.
Some examples of current utility rebate programs for insulation include:
- PNM Residential Insulation Rebates
- El Paso Electric Residential Insulation Program
- New Mexico Gas Company Energy Efficiency Programs
Be sure to check with your specific electric or gas utility about available insulation rebates, as program details and amounts can change from year to year.
It’s important to know that in New Mexico, you can receive a rebate from New Mexico Gas Company simply for installing new energy-efficient insulation into your home.
At Millers, we want to help you save money and keep your home cozy throughout the year. In order to guide you to make energy efficiency more affordable, Millers keeps up with all the latest New Mexico energy rebates programs. We know that you want to ensure you benefit from the best deal for your energy rebates. The industry experts at Millers are always happy to help you reach the best decision. Still, we also realize that you like to be prepared. Accordingly, we have compiled a list of site links to assist with your research.
The Department of Energy (DOE) Electrification Program offers residential rebates for insulation, air sealing, and ventilation upgrades for eligible homeowners.
- Up to 50% of the cost of insulation (a maximum of $1,600 for households with incomes of 80-150% of your area’s median income.)
- 100% of the cost of insulation (a maximum of $1,600 for households with an annual income of less than 80% of the area’s median income.)
You can learn if you qualify for these or any other rebates in New Mexico at Dsireusa.
How to Claim Rebates
Claiming a utility rebate for insulation upgrades takes a few simple steps:
- Schedule Insulation Service
- Complete Service & Documentation
- Submit Rebate Application
- Receive Rebate Check
It’s important to know that in New Mexico, you can receive a rebate from New Mexico Gas Company simply for installing new energy-efficient insulation into your home.
Contact Millers for more tips and tricks to save you money when creating a better, more efficient home.
Tax Credits
In the state of New Mexico, property owners, both residential and commercial, can take advantage of the Sustainable Building Tax Credit (SBTC) program, which offers tax incentives for implementing various energy-efficient and electrification upgrades to existing structures.
Introduced through House Bill 15, this initiative encourages measures such as the installation of Energy Star-rated heat pumps, water heaters, windows, doors, and improvements to insulation levels. The program holds significant advantages for low-income households and affordable housing developments, potentially allowing them to receive double the standard credit amount, potentially covering the full incremental costs associated with each eligible measure.
Furthermore, New Mexico has implemented a refundable tax credit specifically designed for qualifying low-income residents whose income falls below 200% of the Federal Poverty Level.
To obtain comprehensive information about these programs, including detailed guidance on how to apply for the respective credits, interested parties can consult the resources provided by the Southwest Energy Efficiency Project and the New Mexico Energy, Minerals, and Natural Resources Department.
Due to the Inflation Reduction Act (IRA), section 25C, The Energy Efficient Home Improvement Credit, starting January 1, 2023, until January 2032, homeowners can qualify for a 30% tax credit or a yearly maximum of $1,200 on all expenses related to their home energy efficiency projects, including insulation.
In fact, insulation has the highest payout of eligible materials. Millers is familiar with all the details and restrictions, so we can advise if your insulation project qualifies.
To claim the credit, keep all your receipts and manufacturer statements related to the insulation installation. When filing taxes, complete IRS Form 5695 with details on the project and credits claimed.
Tax Credit Programs
To help your insulation research go as smoothly as possible, our knowledgeable insulation experts have compiled a list of tax credit programs offered locally and federally. If you have any questions, please don’t hesitate to contact our staff. We are always happy to help!
Tax Eligibility
Frequently Asked Questions: Tax Credit
What expenses qualify for federal tax credits?
The expenses of adding qualifying insulation...What expenses qualify for federal tax credits?
The expenses of adding qualifying insulation, including the labor (i.e., the installation), to existing homes qualify for federal tax credits. New construction and complete renovations do not qualify.
Are there evaluator requirements?
Yes, to ensure proper installation and...Are there evaluator requirements?
Yes, to ensure proper installation and energy efficiency standards are met, the project needs an assessment by a certified evaluator. Millers has certified evaluators on staff.
What types of insulation qualify?
Standard options of qualifying insulation include...What types of insulation qualify?
Standard options of qualifying insulation include fiberglass, spray foam, cellulose, and other forms of insulation made with sustainable materials. Our experts know the specs needed to get approval.
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