In 2025, homeowners can claim a federal tax credit of 30% of the cost of ENERGY STAR-certified replacement windows, up to a maximum of $600 per year. This credit is part of the Energy Efficient Home Improvement Credit (25C), which covers 30% of costs for qualifying energy-efficient improvements, with a total annual limit of $1,200 for all combined upgrades, including windows.
This tax credit is effective for products purchased and installed between January 1, 2023, and December 31, 2025.
You may be eligible for a California Earned Income Tax Credit (CalEITC) up to $3,756 for tax year 2025 as a working family or individual earning up to $32,900 per year.
Energy-efficient doors, windows and insulation
Exterior doors have a limit of $250 per door and a total limit of $500. Exterior windows and skylights have a $600 total limit. Insulation and air sealing materials or systems have no additional limit outside of the general $1,200 maximum.
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.
Exterior doors that meet applicable Energy Star requirements. Credit is limited to $250 per door and $500 total. Exterior windows and skylights that meet Energy Star Most Efficient certification requirements. Credit is limited to $600 total.
For the 2025 tax credit (Energy Efficient Home Improvement Credit), central air conditioners need SEER2 ratings of at least 17.0 (split systems) or 16.0 (packaged systems) and corresponding EER2 minimums (12.0 for split, 11.5 for packaged) to qualify, with a maximum $600 credit; heat pumps have separate, generally higher, SEER2/EER2/HSPF2 requirements, often around 15.2 SEER2 for split/packaged or 16 SEER2 for non-ducted, plus other efficiency metrics for up to a $2,000 credit.
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.
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.
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.
Tax changes for 2025, largely driven by the "One Big Beautiful Bill" (OBBBA) Act, introduce significant deductions for seniors, tips, overtime, and auto loan interest, expand the Child Tax Credit, and raise the SALT deduction cap to $40,000, while making several 2017 Tax Cuts and Jobs Act provisions permanent, including the seven tax brackets. Key changes include a $2,200 Child Tax Credit, a $6,000 senior deduction, deductions for qualified tips and overtime, and a permanent standard deduction increase.
Millions more can claim new deductions for tips, overtime income, and auto loan interest, while Americans 65 and older can claim a $6,000 seniors deduction. Taxpayers itemizing their deductions may benefit from a higher cap on state and local tax (SALT) deductions than the $10,000 cap that was in place from 2018-2024.
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.
According to the U.S. Department of Energy, homeowners can save between $126 and $465 per year by replacing single-pane windows with ENERGY STAR-certified models. Even upgrading from older double-pane windows can save around $27 to $111 per year or more.
These Home Improvement Projects Are Tax Deductible
Cons Of Composite Windows
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.
For 2025, homeowners can claim federal tax credits for energy-efficient home improvements, offering up to $3,200 annually, with 30% of costs covered for upgrades like insulation, windows, doors, qualifying HVAC, water heaters, and energy audits, capped at specific limits per item, alongside the Residential Clean Energy Credit (30% for solar, etc.) ending Dec 31, 2025, requiring IRS Form 5695 and product PINs for certain items.
So, What Is a Good SEER Rating for an Air Conditioner in 2025? A good SEER rating for an air conditioner this summer is between 16 and 18. This range gives you: Solid energy savings.