Block Advisors by H&R Block to Provide Timely Support for The Home Depot’s Pro Xtra Loyalty Members

Rhea-AI Summary

H&R Block (HRB) has announced a strategic collaboration with The Home Depot for the 2025 tax season, offering discounted Block Advisors services to Pro Xtra loyalty members. The partnership provides Pro customers access to tax preparation, bookkeeping, payroll, and business formation services.

The initiative includes significant discounts:

• $50 off tax preparation with a Small Business Certified Tax Pro
• $25 off DIY online tax preparation
• $25 off business formation services
• First month free, plus 10% off bookkeeping and payroll services

Block Advisors will assist Pro Xtra members with various tax benefits, including the 45L Tax Credit for energy-efficient construction, Section 179 deductions for equipment and property, professional materials deductions, and vehicle expense write-offs. The service launched ahead of the April 15 tax filing deadline, leveraging H&R Block's 70 years of expertise.

Positive

• Strategic partnership with The Home Depot expands HRB's customer base to Pro Xtra loyalty members
• New revenue stream through discounted service offerings to contractors and professionals
• Leverages existing expertise to tap into the construction and home improvement sector

Negative

• Discounted service offerings may impact profit margins

Insights

Business Development Strategist

This partnership represents a strategic customer acquisition channel for H&R Block's small business division. By partnering with The Home Depot, Block Advisors gains immediate access to a highly targeted audience of contractors and trade professionals who have complex tax situations but likely lack dedicated financial staff.

The collaboration's structure is particularly effective - offering $50 off tax preparation and first-month-free deals on recurring services creates a clear funnel: attract customers with tax preparation, then convert them to ongoing bookkeeping and payroll services. This expands H&R Block's revenue potential beyond seasonal tax work into year-round business relationships.

The timing ahead of the April 15 deadline maximizes immediate conversion potential, while the focus on industry-specific deductions (like the 45L Tax Credit for energy-efficient construction) demonstrates service customization for this audience. This isn't merely a discount program - it's a specialized offering that addresses the unique needs of construction professionals.

For H&R Block, this represents efficient customer acquisition through a trusted channel. Construction professionals already have established purchasing relationships with Home Depot, making this a natural extension that reduces typical customer acquisition friction and costs.

Financial Analyst

This partnership enhances H&R Block's growth strategy in the small business segment without significant margin sacrifice. The modest discounts ($25-$50 off one-time services, 10% off recurring services) are strategically designed to drive volume while protecting profitability - essentially a customer acquisition cost that should yield positive ROI.

The collaboration targets high-value small business clients who typically have more complex tax situations than individual filers, commanding higher service fees and greater cross-selling potential. The focus on recurring revenue services (bookkeeping, payroll) is particularly notable, as these create predictable, high-margin income streams beyond seasonal tax preparation.

While the immediate revenue impact isn't quantified, the partnership provides substantial distribution leverage through The Home Depot's extensive footprint and established relationships with professional contractors. The specialization in construction-specific tax benefits (Section 179, professional materials deductions) indicates service differentiation that can command premium pricing.

This relationship aligns with H&R Block's strategic shift toward year-round business services under their Block Advisors brand, potentially accelerating customer acquisition in this segment without the significant marketing expenses typically required to reach these specialized small business customers.

Through The Home Depot’s Pro Xtra membership, Pro customers can now access discounted Block Advisors expertise and tax preparation, bookkeeping, payroll, and business formation services

KANSAS CITY, Mo., March 27, 2025 (GLOBE NEWSWIRE) -- Block Advisors by H&R Block and The Home Depot, the world's largest home improvement retailer, have collaborated for the 2025 tax season to help hardworking Pro customers offload stressful administrative business tasks. This robust collaboration offers significant benefits to Pro Xtra members, such as discounted services, including tax preparation, empowering them to focus on growing their business.

"Our initiative with The Home Depot helps Pro Xtra members navigate the complexities of running a business, such as taxes and bookkeeping,” says Jamil Khan, Chief Small Business Officer at H&R Block. “Having experts that understand the tax codes relevant to the industry helps Pro Xtra members keep more of their hard-earned money.”

The service launched earlier this month ahead of the fast-approaching April 15 tax filing deadline. Block Advisors is backed by 70 years of H&R Block expertise and has category-specific knowledge to help Pro Xtra members lower their tax liability. A Block Advisors tax pro can help business owners understand and leverage such deductions and credits as:

• 45L Tax Credit: This tax credit is available to eligible businesses who build or substantially renovate energy-efficient homes and offers significant tax-time upside.
• Deductions for equipment and property: With a Section 179 deduction, companies can capture tax savings on some big-ticket expenses like property purchases, office renovations, and necessary equipment.
• Professional materials deduction: The cost of materials and supplies can be deducted, depending on the timing of the usage. This often applies to things like cleaning supplies, production expenses, and shipping costs.
• Vehicle and mileage deductions: The costs of driving and maintaining a vehicle for business use can add up fast. Owners can write off many expenses related to the business use of a vehicle.

As part of the collaboration, Pro Xtra members benefit from a special offer* on Block Advisors tax preparation and year-round services, including:

• $50 off tax preparation with a Small Business Certified Tax Pro
• $25 off DIY online tax preparation
• $25 off business formation services 
• First month free, plus 10% off bookkeeping and payroll services 

The Home Depot Pro Xtra members can learn about Block Advisors’ offer at The Home Depot Pro Desks and can also visit www.blockadvisors.com for more information on Block Advisors’ tax preparation and year-round business services.

*Discounts valid online or at participating Block Advisors or H&R Block U.S. offices. Additional restrictions apply. See The Home Depot Pro Desks for details. Void if transferred and where prohibited. No cash value. OBTP#B13696-BR ©2024 HRB Tax Group, Inc.

About H&R Block
H&R Block, Inc. (NYSE: HRB) provides help and inspires confidence in its clients and communities everywhere through global tax preparation services, financial products, and small-business solutions. The company blends digital innovation with human expertise and care as it helps people get the best outcome at tax time and also be better with money using its mobile banking app, Spruce. Through Block Advisors and Wave, the company helps small-business owners thrive with year-round bookkeeping, payroll, advisory, and payment processing solutions. For more information, visit H&R Block News.

Media Contacts
Media Relations:	Erika O’Shea, (816) 585-6058, erika.oshea@hrblock.com Media Desk, mediadesk@hrblock.com
Investor Relations:	Jordyn Eskijian, (816) 854-5674, jordyn.eskijian@hrblock.com

FAQ

What discounts do Home Depot Pro Xtra members get on HRB tax services in 2025?

Members receive $50 off tax preparation with a certified pro, $25 off DIY online tax prep, $25 off business formation services, and first month free plus 10% off bookkeeping and payroll services.

What tax deductions can contractors access through the HRB and Home Depot partnership?

Contractors can access the 45L Tax Credit for energy-efficient construction, Section 179 deductions for equipment, professional materials deductions, and vehicle expense write-offs.

When does the HRB Block Advisors service for Home Depot Pro Xtra members start?

The service launched in March 2025, ahead of the April 15 tax filing deadline.

What business services does HRB offer through the Home Depot Pro Xtra partnership?

HRB offers tax preparation, bookkeeping, payroll, and business formation services to Pro Xtra members with special discounts.