The U-factor measures the rate at which a window conducts non-solar heat flow. The lower the U-factor, the better the window insulates. The SHGC measures how much heat the window lets in from the sun. The lower the SHGC, the less heat the window allows in. To quality for a tax credit for 2023-2032, the windows must be most efficient qualified, and doors need to meet energy star guidelines.
Window Replacement Tax Credits
U-Factor and Solar Heat Gain Coefficient (SHGC)
Energy Star Certified
To qualify for the tax credit, the windows must be Energy Star certified. Energy Star is a program run by the US Environmental Protection Agency that certifies products that meet energy efficiency standards.
Installed in a Primary Residence
The windows must be installed in your primary residence, and not in a rental or vacation home, to qualify for the tax credit.
Installed by December 31, 2023
The windows must be installed by December 31, 2023, to qualify for the tax credit.
In addition to the federal tax credit, some states and local governments offer their own incentives for energy-efficient home improvements. Be sure to check with your state and local governments to see what incentives may be available in your area.
In conclusion, replacing your old windows with energy-efficient ones can save you money on your energy bills and qualify you for tax credits. To qualify for the federal tax credit, the windows must meet specific energy efficiency requirements, be Energy Star certified, installed in a primary residence, and installed by December 31, 2023. To learn more about tax credits for energy-efficient home improvements, visit the US Department of Energy’s website or consult with a tax professional.