Tax Rebates for Window Replacement

The federal government doesn't currently offer a tax rebate for window replacement but it does offer a tax credit for windows and exterior doors. If you've purchased replacement windows or doors for your home in the last few years and haven't claimed your energy tax credit, now could be a good time to do so.

Some of these credits will expire over the coming years, but certain credits are extended throughout 2021. We have compiled information on the tax rebates for window replacement to help make home upgrades more affordable for the typical homeowner. This information has been largely summarized from sources such as Energy Star and the IRS.

Is there a tax rebate for window replacement?

There isn't technically a tax rebate for window replacement, but there is a tax credit. However, it is a rather small tax credit, so you should be ready to invest when you decide to replace your windows. You might qualify for this if you have recently replaced any skylights, doors, or windows that have meet ENERGY STAR criteria. You can read more on ENERGYSTAR's website↗.

Energy Tax Credit Limitations

This tax credit is relatively specific so it is something to pay attention to before choosing your projects, budget, and installation. Windows, skylights, and doors that have been replaced with new products are potentially eligible for the tax credit. It can extend up to 10% of the cost, without including installation costs. This 10% number is only on windows and skylights up to $200.

You can earn this tax credit if you have put in a window or door where there hadn't been one previously as well as in replacement projects.

Max Energy Tax Credit for Windows: $200

How to Qualify for the Tax Credit

The primary way to qualify for the tax credit is to have bought and installed windows between the years 2018 to 2021. The tax credit no longer applies to installs that are any newer than that. If you fall into this category, read for more information on how to understand and apply for the tax credit this year.

Information You'll Need

To qualify for this tax credit, you need to be able to prove that you bought your windows between 2018 and 2021. The best way to do this is to hold onto the sales receipt for your windows and installation project. You also need to collect the manufacturer's certification statement and the NFRC product ratings for the windows. These will be used to verify the seller's product and the energy rating of the windows.

If you don't have this information contact the company that sold you the windows. Smaller companies may not be as helpful with this but larger companies usually keep records of previous customer orders and they can either provide you the information you need or put you in contact with the manufacturer.

How to Apply for the Window and Door Credits

To start your application process, visit the IRS website↗ to find the most recent 5695 form to be able to file for your window credit.

Energy Incentives for Homeowners

The next part of the application to understand are the phases of the various energy incentives. Homeowners will often run groups of home improvement projects through phases. For example, window and roof replacements are often done around the same time. Sometimes these are also combined with siding and HVAC updates. Because all of these affect your home's energy efficiency, there are other incentives↗ that you might be able to combine and qualify for greater returns or credits at the end of the year.

Look for Additional Rebates and Special Offers from Energy Star Partners

Getting a tax credit or a return isn't the only way to make more money back from your energy-efficient updates. To make sure that you are getting the most you can get back, type your zip code into the website for the Energy Star partners↗. They will list any of the other rebates or special offers your situation and geographic location might qualify you for.

What's the Difference Between a Tax Credit and a Tax Rebate?

A tax credit is an allowance that the government at either a federal or state level will allow to certain taxpayers who meet the credit's criteria. These will then subtract from the amount of tax they owe the next year.

A tax rebate is a payment the government makes after the due date for tax returns. They are a portion of the total amount that the taxpayer paid for previous purchases.

Looking for information to help you claim your tax credit? If you purchased your windows or doors from Brennan Enterprises, give us a call and we'll help you find the documentation you need.