Residential Clean Energy Tax Credit Information

The Residential Clean Energy Tax Credit, also known as the Residential Energy Efficiency Tax Credit, is a tax incentive offered by the federal government to encourage homeowners to make energy-efficient upgrades to their homes. The tax credit is available for a variety of energy-saving upgrades, including energy efficient impact windows and doors.

Windows and doors play a crucial role in the energy efficiency of a home. Inefficient windows and doors can lead to heat loss in the winter and heat gain in the summer, causing homeowners to waste energy and money on heating and cooling costs. Upgrading to energy-efficient windows and doors can help reduce these costs by improving the home's insulation and air sealing.

The Residential Clean Energy Tax Credit allows homeowners to claim a tax credit of 10% of the cost of eligible energy-efficient upgrades, up to a maximum credit of $500 for doors and $600 for exterior windows. This includes the cost of energy-efficient windows and doors, as well as other eligible upgrades such as insulation, roofing, and heating and cooling systems.

To be eligible for the tax credit, windows and doors must meet certain energy-efficiency standards. (Luckily, the windows and doors provided by our suppliers meet these standards!) For windows, the National Fenestration Rating Council (NFRC) sets these standards, and for doors, the American Society for Testing and Materials (ASTM) sets the standards. Energy-efficient windows and doors must have a U-factor and Solar Heat Gain Coefficient (SHGC) that meet the NFRC or ASTM requirements. These values indicate how well the window or door blocks heat flow and prevents heat gain, respectively.

The Residential Clean Energy Tax Credit provides a significant incentive for homeowners to invest in energy-efficient upgrades for their homes, including windows and doors. By improving the energy efficiency of a home, homeowners can reduce their energy bills, save money, and contribute to a greener future.

 Energy Efficient Home Improvement Credit: Qualifying Expenditures and Credit Amount

The section below,  taken from the IRS fact sheet discusses the window credit:

Q1. What home improvements are eligible for the Energy Efficient Home Improvement Credit, and how much is the credit? (added December 22, 2022)

A1. The following energy efficient home improvements are eligible for the Energy Efficient Home Improvement Credit: • Building envelope components satisfying the energy efficiency requirements in Q1 under the Energy Efficiency Requirements section:

1.  exterior doors (30% of costs up to $250 per door, up to a total of $500); 

2. exterior windows and skylights (30% of costs up to $600); and 

3. insulation materials or systems and air sealing materials or systems (30% of costs). 

Here is the link to the IRS fact sheet:

https://www.irs.gov/pub/taxpros/fs-2022-40.pdf