Categories: Windows

Federal Tax Credits for Energy Efficient Windows

Federal Tax Credits – Stimulus Funds

The latest round of Federal Stimulus Money has created federal tax credits for home owners that install energy efficient windows. So if you plan on replacing some windows while you renovate an existing home there is a nice Federal Tax Credit worth up to $1,500 for energy efficient windows that meet certain criteria. These credits DO NOT APPLY to new homes.

Tax Credit Criteria

According to the Government’s Energy Star website, a tax credit is available for 30% of the cost up to $1,500 for energy efficient exterior windows. (The maximum $1,500 includes all of the qualifying home improvements with a couple of exceptions) The windows must meet the following two criteria:

  • U factor less than 0.30
  • SHGC factor less than 0.30

Most decent window manufacturers make windows that easily qualify for these standards. If you think about it this basically means you can get up to 30% off of new windows. Also, with the current state of the economy many window manufacturers are running promotions right now to improve sales. This means it’s a really great time to buy new windows for your home. Make sure you take advantage of these tax credits between now and December 31, 2010.

If you’re interested in installing your own replacement windows you need to read: How To Measure For Replacement Windows.

Todd Fratzel

I'm full time builder for a large construction company in New Hampshire. I run their design-build division that specializes in custom homes, commercial design-build projects and sub-divisions. I'm also a licensed civil and structural engineer with extensive experience in civil and structural design and home construction. My hope is that I can share my experience in the home construction, home improvement and home renovation profession with other builders and home owners. I'm also the Editor-in-Chief and Founder of Tool Box Buzz. Please feel free to contact me if you have any questions, suggestions or you'd like to inquire about advertising on this site.

View Comments

  • Hi Todd,

    The government requirements state that the tax rebate is not available to those building new homes, only replacement.

  • Let me get this straight. The government is taking my money to pay for windows in other people's houses, but I can't use it for mine.

    It's a mad world.

  • What I want to know is how long can these tax credits be used? What if I don't need them the first couple of years because I already have tax credits that are unused from last year. Will these credits expire if not used within a certain time frame?

    • @ Gail - Not sure I fully understand your question. Are you asking if you do the home improvements this year can you wait to "cash" in on the credits? I'm not sure you really should consult a tax professional for that.

  • Buyers should always consult their tax advisor before purchasing windows to take advantage of this opportunity to save money and gain energy efficiency in their homes. There are couple of important things to note about the federal energy TAX CREDIT. The requirements to qualify for the new energy tax credit include:

    1) Windows purchased must be equal to or below a U-Factor of 0.30 and a Solar Heat Gain Coefficient (SHGC) of 0.30.
    2) The purchase of the qualified windows must be made during the taxable year for which the credit is being claimed.
    3) The credit is only allowed on the price of the qualified windows themselves, not on installation costs, onsite preparation, assembly or sales tax.
    4) The tax credit is allowable only for qualified window units PLACED IN SERVICE in 2009 and 2010.
    5) Homeowners must save their receipts for their windows purchased along with all window labels and stickers for verification and tax recordkeeping.
    6) The windows must be installed in the taxpayer's principal residence.
    7) This tax credit is capped at a total of $1,500 for the years of 2009 and 2010.

    NOTE: Unlike a tax deduction, which only reduces the amount of your taxable income, a tax credit reduces the amount of tax you owe.

    For more detailed information visit http://www.simonton.com/taxcredit

    Marty Davis
    Simonton Windows

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