Energy Efficient Home Improvement Credit

The Act will essentially revive the Nonbusiness Energy Property Credit (“NEPC”), which expired at the end of 2021, and rename it the Energy Efficient Home Improvement Credit (“EEHIC”).

50% off installation on windows & doors* - 0% interest, 0 payments for 12 months**

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Energy Efficient Home Improvement Credit

The Act will essentially revive the Nonbusiness Energy Property Credit (“NEPC”), which expired at the end of 2021, and rename it the Energy Efficient Home Improvement Credit (“EEHIC”).

50% off installation on windows & doors* - 0% interest, 0 payments for 12 months**

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This field is for validation purposes and should be left unchanged.

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taxes

Federal Tax Credits (Energy Efficient Home Improvement Credit)

The main federal incentive that covers windows and doors is the Energy Efficient Home Improvement Credit (Sec. 25C of the IRS code). It provides a dollar-for-dollar reduction in income tax liability when you make qualifying energy-efficient upgrades to your home.

Window & Skylight Replacement

You can claim 30% of the product cost (but not labor) of eligible energy-efficient replacement windows and skylights.

*Annual credit cap: up to $600 total for windows and skylights.

Exterior Door Replacement

You can claim 30% of the product cost for eligible exterior doors.

*Annual limit: up to $250 per door, with a maximum of $500 total per tax year.

Annual Limits & Aggregation

In total, for building envelope improvements (windows, doors, insulation, etc.), there’s an aggregate cap of $1,200 per year.

You can also combine this with credits up to $2,000 per year for other energy property (like heat pumps, water heaters, biomass stoves) for a maximum of up to $3,200 in annual credits if you include other eligible upgrades.

Eligibility Requirements

To qualify for the tax credit:

The home must be your existing primary residence (not a rental).
Windows and doors must meet energy efficiency criteria — typically requiring certification (e.g., ENERGY STAR Most Efficient).

Starting in 2025, eligible products must be from a qualified manufacturer and include a Qualified Manufacturer Identification Number (QMID) on your tax return for the credit to be allowed.

You must claim the credit on IRS Form 5695 when you file your tax return.

Important Tax Deadline

As of 2026 tax rules and recent legislative changes, the Energy Efficient Home Improvement Credit for windows and doors generally applies to **qualifying property placed in service on or before December 31, 2025 (meaning installed and in use by that date).

**(This end date reflects changes to the law — if you’re planning projects in 2026 or later, confirm with a tax professional whether these credits are extended or replaced by new incentives.)

Key Things to Plan For

Product selection: Make sure windows and doors not only meet ENERGY STAR or equivalent efficiency criteria but also come from a qualified manufacturer with a valid QMID — especially for 2025 claims.
Documentation: Keep receipts, product info, energy certification labels, and manufacturer IDs for your tax records.
Timing: If you want to use these credits, install and place the products into service before year-end deadlines (e.g., by Dec 31, 2025), since eligibility can hinge on placement date.

In 2023, the Tax Credit program requirements for fenestration products transitioned to their respective ENERGY STAR® programs:

Doors: ENERGY STAR Version 7.0
Windows and skylights: ENERGY STAR Most Efficient, which is more stringent than previous tax credits

New IRS regulations in 2025 introduced stricter reporting and QPIN requirements, with potential fines associated
The existing federal tax credit was changed and only funded through 2025 (not through 2032 as previously approved)

As anticipated, the federal tax credit ended December 31, 2025, and there are no tax credits available for 2026
It may be possible for customers to receive a rebate via the ENERGY STAR Rebate Finder. Because each state and provider are different, it is difficult to guarantee a rebate; however, it may be worth recommending customers explore the website.