Yes, ENERGY STAR-certified replacement windows are eligible for a federal tax credit in 2025, not a direct deduction. Homeowners can claim 30% of the product cost, up to a maximum of $600 per year, for qualifying energy-efficient windows installed through December 31, 2025. Installation labor costs are generally not included in the credit calculation.
In 2025, homeowners can claim 30% of the cost of their qualifying windows, up to a maximum of $600 per year. This applies to windows that meet ENERGY STAR qualifications for energy efficiency. So, if you spend $2,000 on new windows, you can claim $600 back as a credit on your federal taxes.
These Home Improvement Projects Are Tax Deductible
Your home must be in the U.S., and it must be an existing home that you improve or add onto. This credit does not apply to a newly built home. You may not claim the credit if you're a landlord or other property owner and you do not live in the home. The credits have no lifetime dollar limits.
For the 2025 tax year (filing in 2026), key U.S. tax breaks include a higher standard deduction, an enhanced Child Tax Credit, new deductions for tips, overtime, and auto loan interest, plus an extra deduction for seniors (65+). A significant boost for some filers is the increased State and Local Tax (SALT) deduction cap to $40,000, making it easier to deduct property and income taxes. These changes stem from new legislation, the "One Big Beautiful Bill," that also makes the 2017 tax brackets permanent.
For the 2025 tax year, seniors (age 65+) get a new $6,000 bonus deduction (or $12,000 for couples) under the "One Big Beautiful Bill," stacked on top of the existing senior standard deduction, phasing out for incomes over $75k (single) or $150k (joint), available through 2028, and requires an SSN and joint filing if married.
This program is a combined effort of the Canadian Greener Grant and Enbridge. Homeowners can get a rebate of $175 per regular window, sliding or hinged door and $325 for the most energy-efficient models (all Ecoline windows qualify for maximum rebate).
Not all windows qualify for tax credits. To be eligible, exterior windows and skylights must meet Energy Star criteria or similar energy efficiency standards. Energy Star certified products are tested and verified by the Environmental Protection Agency to ensure they meet or exceed energy efficiency requirements.
2025 presents a wealth of opportunities for Canadian homeowners to save on renovation projects through CRA tax credits for home renovations. By focusing on eligible upgrades, maintaining proper documentation, and partnering with professionals, you can enhance your property while reaping substantial financial benefits.
Yes. Beginning in tax year 2023, the tax law was updated so homeowners can earn an energy tax credit of 30% of the cost of new windows, up to a maximum $600. This structure is part of the Inflation Reduction Act of 2022, which extends and increases benefits of the Energy Efficient Home Improvement Credit (EEHIC).
April 15, 2026, is the deadline for 2025 tax returns for individuals. The due date for filing your federal income tax return is typically April 15 if you're a calendar year filer, unless this day falls on a weekend or holiday, in which case the deadline is moved to the next business day.
If purchasing a window, door, or skylight off the shelf, look for the ENERGY STAR label for your climate zone next to the NFRC label on the glass.
This tax credit is effective for products purchased and installed between January 1, 2023, and December 31, 2025.
In 2025, average window replacement costs range from $700 to $1,500 per window, with specialty styles priced higher. Steel casement windows, awnings, and curtain wall windows offer top performance and premium looks but cost more. Frame material, window size, glazing, and local labor costs are the biggest price factors.
The replacement windows, doors or skylights must be ENERGY STAR-certified products. You must have a copy of the Manufacturer's Certification Statement to qualify.