The Energy Efficient Home Improvement Credit Explained
Part of the Inflation Reduction Act, the Energy Efficient Home Improvement Credit stipulates federal tax credits to homeowners using them to cover a wide range of home upgrades. The figures we’ve mentioned are the maxed-out credits available to homeowners for window and door upgrades. There are some qualifying factors, such as:
- Eligible windows and sliding patio doors must meet the stringent ENERGY STAR Most Efficient rating, while entry doors simply require an ENERGY STAR rating.
- This federal tax credit applies to purchases made between January 1, 2023 and December 31, 2023.
- Tax credits are non-refundable. They are available only to homeowners with a minimum tax liability of $500.
- Homeowners must expect to be using these upgrades for at least 5 years.
How Do Energy-Efficient Upgrades Benefit You?
- Home Value Increases: Homebuyers value both green initiatives and home efficiency. Window and door upgrades boost your resale value.
- Interior Comfort: With less heat or cool air escaping and outside temperatures staying out, your home is comfortable year-round.
- Lower Utility Bills: Yes! Energy-efficient windows and doors allow your HVAC system to work less, leading to lower utility costs every month.
Financing Options are Available!*
*With approved credit. Credit restrictions may apply.
Upgraded windows & doors—with major financial benefits—are within your reach.
EXPLORE FLEXIBLE FINANCINGWhat Goes into Your Savings?
Let’s dig into the technology that helps keep your monthly utility costs low.
- Energy-efficient windows allow natural light to pass through into your home without the accompanying long-wave infrared radiation, meaning your indoor temperatures stay where you’ve set your thermostat.
- Low-E glass is engineered to reduce the overall amount of UV rays that make it into your home. You’ll have plenty of light without faded rugs and furniture, so your interior decor investments will last longer as well!
- Intercept™ warm-edge spacers insulate the exterior edges of sealed window units, effectively creating a thermal barrier to the outdoors. This furthers your home’s energy efficiency.
Your Questions, Answered
Tax Credit FAQs
How does the federal tax credit work?
The Inflation Reduction Act instituted expanded tax incentives for home improvements that increase energy efficiency. When you upgrade your windows, you’ll receive $600 per year in a federal tax credit for making that investment. When you upgrade an exterior door, you’ll receive $250 per year in federal tax credits. This applies for up to 2 doors, so that’s $500 combined per year, adding up to $1,100 total in federal tax credits.
What makes energy-efficient windows valuable?
In addition to the monthly savings on utility bills energy-efficient windows provide, they regulate your home’s temperature year-round. By keeping heat or cool air from your HVAC inside and preventing outside temperatures from seeping in, your home remains comfortable.
Why invest in energy-efficient exterior doors?
Quality airtight weatherstripping and an insulated polyurethane core keep your home at your ideal temperature year-round. This also helps your HVAC system work more efficiently, since it won’t be working double-time to accommodate for ineffective thermal barriers.
How long will energy-efficient replacement windows last?
You can expect your replacement windows to last between 20-40 years. Just in case, though, all Window World windows (and doors!) come with a limited lifetime warranty.
Tax Credit Back for Your Upgrade
Ready to learn more? We’re here to help. Reach out and we’ll discuss what energy-efficient replacement windows could do for your home’s energy performance.
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