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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
Replacing your old windows with energy-efficient ones not only helps lower your energy bills but also can qualify you for tax credits. The federal government provides tax credits to homeowners who make energy-efficient upgrades to their homes, including replacement windows.
PLEASE NOTE: Details of tax credits can change and some states will also offer their tax credits. Please check with the proper federal and state authorities to find out exactly what you qualify for and how to access any tax credits that might be available. The EnergyStar.gov website has been a good source of information.
For 2023-2032, the federal government offers a rebate of 30% for most efficient EnergyStar products up to $600 for windows and $500 for doors annually (up to $3200 total for all 25C tax credit items) Please ask your Pella representative if your project would qualify.
To qualify, the windows must meet the following requirements:
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.
To claim the tax credit, you will need to fill out IRS Form 5695 when you file your taxes. Be sure to keep all receipts and manufacturer certifications for the windows you purchased.
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.
