Can I Get A Tax Credit for Installing New Windows?

Can I Get A Tax Credit for Installing New Windows?

That depends. But signs point to yes!

 

Installing new windows and doors? Don’t leave money on the table!

As a part of the Inflation Reduction Act of 2022, homeowners can take advantage of federal tax credits and reductions when they make energy-efficient home improvements. This includes the installation of ENERGY STAR-rated exterior doors, windows, skylights and other upgrades.

The credits are available until 2032 and provide up to $3,200 per year for all home improvements.

 

How much can I get?

$3,200 is the maximum credit you can receive, but there are other limits to consider. For instance, if the only home upgrade you make is replacing your windows, the credit is capped at $600. To get the full tax credit, you would need to make multiple home upgrades that year (for instance, replacing your heat pump and windows as well as installing two new exterior doors).

A quick breakdown of the benefits:

Home Upgrade % Of Product Cost Covered Maximum Amount Credited
Windows* 30% $600
Skylights* 30% $600
Exterior Doors** 30% $500 ($250 per door)

*Must meet the ENERGY STAR Most Efficient criteria.

**Must be ENERGY STAR certified to qualify.

 

To see other qualifying upgrades for homeowners, visit energystar.gov.

 

Who qualifies for the tax credit?

To qualify, you must be the owner of the home and its principal resident—meaning you live there most of the time. The home in question must be an existing house, mobile home, condominium, apartment, manufactured home or houseboat. The credit does not apply to new construction or rental properties.

 

Why switch to energy-efficient windows and doors?

The benefits of switching to energy-efficient windows and doors go well beyond any tax credits you may receive:

  • Year-round Savings – Energy-efficient windows can help you save money on your energy bills by reducing heat loss in the winter and heat gain in the summer. According to energystar.gov, “By choosing ENERGY STAR, a typical household can save about $450 on their energy bills and still enjoy the quality and performance they expect.”

 

  • ComfortDrafty windows and doors aren’t just hard on your wallet. They make your home less inviting. Swapping out your old windows can have a HUGE impact on your comfort level by reducing drafts and cold spots. When homeowners make the switch, they can tell the difference right away!

 

  • Better for the Environment – ENERGY STAR products and other energy-efficient home upgrades help reduce your home’s carbon footprint and promote sustainability. “Since 1992, ENERGY STAR and its partners helped American families and businesses save 5 trillion kilowatt-hours of electricity, avoid more than $500 billion in energy costs, and achieve 4 billion metric tons of greenhouse gas reductions,” according to ENERGY STAR.

 

  • Enhanced Style: Energy-efficient windows and doors are high-quality products. And when products are made with better materials and are thoughtfully designed, this is usually reflected in the overall look. When choosing a high-quality, energy-efficient product, you can rest assured it will look as great as it functions.

 

Upgrade Your Home’s Windows and Doors

Ready to make your home more comfortable, efficient and beautiful? Visit the Tri-County showroom to see your options—including ENERGY STAR-rated windows and doors.

 

The information provided on this blog is for informational purposes only and should not be considered tax or legal advice. The content is based on our understanding of current tax laws and regulations, which are subject to change at any time.

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