Yes, a federal tax credit of up to $600 is available for installing qualifying energy-efficient windows, as part of the Energy Efficient Home Improvement Credit under the Inflation Reduction Act. This credit equals 30% of the product cost (excluding installation) for windows meeting Energy Star "Most Efficient" criteria, with a $600 annual limit.
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.
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.
$1,200 for energy efficient property costs and certain energy efficient home improvements, with limits on exterior doors ($250 per door and $500 total), exterior windows and skylights ($600) and home energy audits ($150) $2,000 per year for qualified heat pumps, water heaters, biomass stoves or biomass boilers.
Now through 2024, homeowners can claim a tax credit of up to 30% of the cost of qualifying energy-efficient improvements to their homes, which may include hurricane windows if they meet certain standards.
To qualify for the federal energy tax credit (25C), exterior windows and skylights must be ENERGY STAR Most Efficient certified products, featuring low-E coatings, insulated glass (double/triple-pane), and specific low Solar Heat Gain Coefficient (SHGC) and U-Factor ratings, not just any window type (like double-hung or casement), and you need the manufacturer's certification statement and QMID. You claim 30% of costs up to $600 annually for these products, installed in your primary residence between 2023-2032, by filing IRS Form 5695.
A recent tax law ("One Big Beautiful Bill") introduced a new $6,000 bonus deduction for Americans aged 65 and older, available for tax years 2025-2028, reducing taxable income, not the tax itself, with income phase-outs starting at $75,000 MAGI for singles and $150,000 for joint filers. This deduction adds to existing standard deductions, provides up to $12,000 for couples, and requires a Social Security number and filing status other than Married Filing Separately.
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.
How to claim the credit. File Form 5695, Residential Energy Credits with your tax return to claim the credit. You must claim the credit for the tax year when the property is installed, not merely purchased.
These Home Improvement Projects Are Tax Deductible
Eligibility for Claiming Window Replacement Expenses
First and foremost, the property on which the windows are being replaced must be your principal residence. This means that you must own and occupy the property as your primary place of residence.
Energy Efficient Home Improvement Credit
These expenses may qualify if they meet requirements detailed on energy.gov: Exterior doors, windows, skylights and insulation materials. Central air conditioners, water heaters, furnaces, boilers and heat pumps. Biomass stoves and boilers.
A: Fill out IRS Form 5695, following IRS instructions, and include it when filing your tax return. Include any relevant product receipts.
The Residential Clean Energy Credit provides tax credits for the purchase of qualifying equipment including solar, wind, geothermal and fuel-cell technology. You can claim the credit for solar, wind, and geothermal equipment installed in your principal residence as well as any other home you use as a residence.
Canada Greener Homes Grant.
This grant offered up to $5600 for replacement windows and doors: $125 per regular window, sliding or hinged door and $250 for the most energy-efficient models (all Ecoline windows qualify for maximum rebate).
How much do energy-efficient windows cost? Energy-efficient windows cost between $150 and $2,000+ per window, with most people paying around $400 per window, according to home services website Angi. Professional installation usually costs an additional $100 to $300 per window.
In Canada, a $2,000 tax credit often refers to the Pension Income Amount (Line 31400) for seniors receiving eligible pension/annuity income, creating a $300 federal credit (15% of $2,000), or a provincial Training Tax Credit for Apprentices, like British Columbia's $2,000 for completing specific training levels, while other benefits like the GST/HST Credit or Disability Benefit offer amounts varying based on income and family situation, not a fixed $2,000 for everyone.
The new senior tax deduction of up to $6,000 for single filers and $12,000 for joint filers, was created to help cover taxes on Social Security benefits. Taking the new senior deduction helps to reduce your taxable income, which can mean less tax or potentially an even bigger tax refund when you file your return.
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).
If a window has the ENERGY STAR designation, it will be labeled to show the zones in which it is qualified. Climate zones have different recommended energy-efficient performance levels for windows, doors, and skylights. You can use the NFRC label or the NFRC Certified Products Directory to compare ENERGY STAR products.