Are you a homeowner looking to replace your windows? Good news — a whole-house window replacement could qualify you for a valuable tax credit. Thanks to upgraded federal tax incentives, upgrading to newer, better windows is now more affordable.
Learn more about the available tax credits for window replacements, the eligibility criteria, and how easy it is to file a claim.
What Are the Available Tax Credits for Window Replacement?
The tax credits available for installing energy-efficient windows are a part of the U.S. government’s broader initiative to encourage energy-saving home improvements. Such upgrades not only benefit homeowners financially but also contribute to global sustainability goals.
The main tax credit for replacing your windows is available under the Energy-Efficient Home Improvement Credit facilitated through the Inflation Reduction Act of 2022. Starting in the tax year 2023, homeowners can receive a tax credit of 30% of the cost of new windows, with a maximum credit of $600.
Remember, this is an annual limit, not a lifetime limit. So, if you install a few windows in 2023 and more in 2024, you can claim the credit for both tax years. This incentive extends through Dec. 31, 2032, offering ongoing benefits for anyone who replaces their windows between now and then.
New windows must meet the ENERGY STAR® Most Efficient criteria to be eligible for the tax credit. ENERGY STAR is a program run by the Environmental Protection Agency that promotes energy efficiency.
The Most Efficient designation recognizes the best of the best. Windows that meet these criteria are designed to provide superior insulation, significantly reducing energy loss and lowering heating and cooling costs.
The property itself must also qualify. Your U.S. home may be eligible if it’s your primary residence. New home builds don’t qualify, and you can’t claim the credit if you’re a landlord or property owner who doesn’t live in the home.
You also can’t claim the credit if you use the home solely for business. If business operations are confined to 20% or less of an otherwise eligible home, you can claim the full credit. If business use accounts for more than 20% of the home, you may qualify for a partial credit.
Given the complexity of tax laws and eligibility criteria, consulting a tax professional is advisable to ensure you’ve met all the requirements and are claiming the correct amount.
Choosing a whole-home window replacement isn’t just about getting a tax credit — it’s about long-term savings and efficiency. High-performance windows pay you back over time by reducing heating and cooling costs. Plus, they’re a solid investment that enhances your home’s comfort and value.
How To Claim an Energy Tax Credit
To claim the Energy-Efficient Home Improvement Credit, homeowners must file IRS Form 5695, Residential Energy Credits, during their annual tax filing. The credit is claimable in the year the windows are installed, not the year of purchase.
For instance, if the windows are installed in 2023, homeowners would claim the credit on their 2023 taxes filed in 2024.
Schedule Window Replacement With Zen Windows Twin Cities
Team up with Zen Windows Twin Cities for a smooth, rewarding window replacement process. We offer high-quality window installations for homeowners in the Twin Cities area. With an owner boasting 30 years of experience, you know you’re in capable hands.
Ready for a more energy-efficient home? Seize the replacement window tax credit with help from Zen Windows Twin Cities.