Energy Tax Credits for Windows: What Homeowners Need to Know in 2026

Please note that this article provides general information only and does not constitute tax, legal, or financial advice. Always consult a qualified tax professional for advice specific to your situation.

If you installed energy-efficient windows in 2025 or earlier, you could be sitting on hundreds of dollars in unclaimed federal tax credits right now. The federal Energy Efficient Home Improvement Credit (Section 25C) offered homeowners up to $600 back per year on qualifying window upgrades, but the program expired on December 31, 2025, under the One Big Beautiful Bill Act (OBBBA).

That means 2026 is a filing year, not an installation year. If you made the upgrade in time, your next step is claiming the credit on your 2025 tax return before it’s too late. And if you missed the federal deadline entirely, state utility rebates and local incentive programs can still help offset the cost to replace your windows.

This guide walks through who can still file, how the credit worked, what documentation you need, and where to find savings now that the federal program has ended.

What Was the Federal Energy Tax Credit for Windows?

The federal energy tax credit for windows was a dollar-for-dollar reduction on your federal tax bill for installing qualifying energy-efficient windows. Under Section 25C of the Internal Revenue Code, homeowners could claim 30% of the product cost, up to an annual maximum of $600.

The credit was expanded by the Inflation Reduction Act (IRA) of 2022 and applied to qualifying windows installed between January 1, 2023, and December 31, 2025. The $600 window cap fell within a larger $1,200 annual aggregate limit covering all building envelope improvements (windows, doors, skylights, and insulation) combined with furnaces, boilers, and central air conditioners.

Tax credit vs. tax deduction

This distinction matters. A tax deduction only reduces your taxable income. A tax credit reduces the actual tax you owe, dollar for dollar.

So if your tax liability was $5,000 and you qualified for the full $600 window credit, you would owe $4,400. The credit was nonrefundable, which means it could reduce your tax liability to zero but could not generate additional refund on its own. However, if you overpaid your taxes throughout the year through W-2 paycheck withholdings, you would still receive your normal refund check. The credit simply cannot push your calculated tax below zero.

Can You Still Claim the Window Tax Credit in 2026?

Yes, but only if your windows were installed by December 31, 2025. The OBBBA, signed into law on July 4, 2025, accelerated the termination of the Section 25C credit. Windows placed in service after that date are not eligible.

Important: “Placed in service” means fully installed and operational, not just purchased or ordered. If you bought windows in December 2025 but installation was not completed until January 2026, you cannot claim the credit on either tax year.

If your windows were installed during the 2025 calendar year, you will claim the credit when filing your 2025 federal tax return using IRS Form 5695. Most homeowners are filing their 2025 returns in early-to-mid 2026, so the opportunity to claim this credit is right now.

What Windows Qualified for the Tax Credit?

Not every energy-efficient window qualified. From 2023 through 2025, only windows meeting ENERGY STAR Most Efficient criteria were eligible. Standard ENERGY STAR certification alone was not sufficient.

The Most Efficient designation required a U-Factor of 0.20 or lower across all climate zones. However, the Solar Heat Gain Coefficient (SHGC) requirements varied by region:

• In Northern climate zones, a higher SHGC (≥ 0.20) is actually encouraged because passive solar heat gain helps reduce heating costs in winter.
• In Southern climate zones, the SHGC must be ≤ 0.23 to block excess solar heat and reduce cooling loads.

The U-Factor measures how well a window prevents heat transfer (lower is better), while SHGC measures how much solar radiation passes through the glass. If you live in a hot climate, choosing windows designed for heat resistance with a low SHGC is especially important for both comfort and energy savings.

Common features of qualifying windows

Most windows that met the Most Efficient criteria shared several characteristics:

• Triple-pane glass with low-emissivity (low-E) coatings
• Argon or krypton gas fills between panes for improved insulation
• Thermally efficient frame materials like fiberglass, vinyl, or composite
• NFRC-certified performance ratings meeting EPA thresholds

To confirm whether a specific window qualifies, check the ENERGY STAR Certified Products Directory or look for the ENERGY STAR Most Efficient label on the product documentation.

How Much Did the Window Tax Credit Save Homeowners?

The window tax credit covered 30% of the product cost (not including labor), capped at $600 per year. Here is how the math worked for a few common scenarios:

What counts as “product cost”

The credit only covered the cost of the windows themselves. Installation labor was excluded from the calculation.

If your invoice showed $2,000 for products and $800 for labor, only the $2,000 counted toward the 30% credit.

Note: While the IRS excludes labor costs for “building envelope components” like windows and doors, labor costs are fully included when claiming credits for “residential energy property” like heat pumps or central air conditioners. The rules differ by improvement type.

Splitting projects across tax years

Homeowners who needed a full-house window replacement sometimes found it beneficial to replace windows in stages across two tax years. Because the $600 annual cap reset each January, splitting a project between 2024 and 2025 could have yielded up to $1,200 in total credits instead of $600. That strategy is no longer available for new installations, but it is worth understanding for anyone who staggered their project this way.

What Is the PIN or QM Code Requirement?

For the 2025 tax year, the IRS introduced a new documentation requirement for claiming the energy-efficient window credit. You must include the manufacturer’s Product Identification Number (PIN) on your tax return.

The full PIN is a 17-character code. However, for installations completed in 2025, the IRS is allowing a transitional grace period. Homeowners can use the manufacturer’s four-character QM Code (Qualified Manufacturer code) on Form 5695 instead of the full PIN.

How to find your QM Code

• Check the manufacturer’s product documentation or certification paperwork.
• Contact the window retailer or installer and request it.
• Visit the manufacturer’s website. Most major brands (Andersen, Pella, Marvin, Milgard) have published their QM Codes online.

Important: Without a valid PIN or QM Code on your tax return, the IRS may reject your credit claim. Make sure you have this code before filing.

For the official IRS guidance on this requirement, see IRS Fact Sheet FS-2025-01.

How Do You File for the Window Tax Credit?

Filing requires IRS Form 5695 (Residential Energy Credits), which you attach to your standard Form 1040. Here is what to do.

Step 1: Gather your documentation

You will need three things:

• Purchase receipts or invoices that clearly separate product costs from installation labor
• The manufacturer’s certification statement confirming the windows meet ENERGY STAR Most Efficient criteria
• The four-character QM Code from the manufacturer

Save all of this documentation. The IRS recommends keeping records for at least three years after filing.

Step 2: Complete Part II of Form 5695

Enter your total qualifying product cost (excluding labor). The form calculates your 30% credit, subject to the $600 annual limit for windows and the $1,200 aggregate limit for building envelope improvements.

Step 3: Transfer the credit to your Form 1040

The resulting credit amount reduces your tax liability directly. Because the credit is nonrefundable, it can bring the tax you owe down to zero but cannot generate additional refund beyond that. If you overpaid through paycheck withholdings during the year, you will still receive your normal refund. The credit simply will not increase it.

If you also made other qualifying energy improvements in 2025, such as installing a new front door or upgrading your HVAC system, report all of those on the same Form 5695. Each improvement type has its own sub-limits within the $3,200 annual maximum.

Are There State or Local Rebates for Energy-Efficient Windows?

Even though the federal tax credit has ended for new installations, many state, local, and utility programs continue to offer rebates for energy-efficient windows. Your savings potential depends on where you live and which utility company serves your home.

Utility company rebates

Some utilities offer per-window rebates ranging from $50 to $200 for qualifying upgrades, especially when replacing single-pane windows. Two current examples:

• Mass Save (Massachusetts): $75 rebate per window when upgrading from single-pane to ENERGY STAR Most Efficient certified products.
• Puget Sound Energy (Washington): Up to $100 per window, with income-qualified households eligible for up to $200 per window through 2026.

Where to search for rebates in your area

The ENERGY STAR Rebate Finder is one of the best starting points. You can also search the Database of State Incentives for Renewables and Efficiency (DSIRE) for a comprehensive list of state and local programs.

What about the federal IRA rebate programs?

You may have heard about the HEAR (Home Efficiency Audit Rebates) and HOMES (Home Owner Managing Energy Savings) programs created under the IRA and administered by state energy offices. These are separate from the Section 25C tax credit.

However, these programs do not offer standalone point-of-sale discounts just for purchasing windows. The HEAR program explicitly excludes windows. The HOMES program only covers windows if they are part of a whole-home energy reduction project achieving a modeled improvement of 20% to 35% or more. For most homeowners looking to replace windows on their own, utility-level rebates are the more practical option. For more details, visit the DOE Home Energy Rebates page.

Do Energy-Efficient Windows Still Save Money Without the Tax Credit?

Absolutely. The primary financial return from energy-efficient windows comes from reduced heating and cooling costs over their 20- to 30-year lifespan, not from a one-time tax credit.

According to ENERGY STAR, replacing single-pane windows with certified products can save an average of 7% to 15% on household energy bills, depending on your climate zone and the number of windows replaced. In regions with extreme temperatures, savings tend to be at the higher end of that range.

If your current windows show signs of deterioration like failed window seals, visible condensation between panes, or persistent drafts, the energy waste is costing you money every month. Upgrading eliminates those losses. You can also insulate your existing windows as a lower-cost stopgap while planning a full replacement.

Beyond the utility bill, high-performance windows also reduce strain on your HVAC system, potentially extending the life of your heating and cooling equipment. And from a resale perspective, window replacements consistently rank among the top home improvement projects for return on investment. For a deeper look at the full financial picture, see our guide to windows ROI.

What Other Energy Tax Credits Were Available Alongside Windows?

The Section 25C credit covered more than just windows. Through December 31, 2025, homeowners could claim credits for a range of improvements, each with its own annual sub-limit.

This structure meant a homeowner could theoretically claim up to $3,200 in a single year by combining different types of upgrades. For example, $600 for windows, $500 for doors, and $100 for insulation within the $1,200 building envelope limit, plus $2,000 for a heat pump installation.

Note: All Section 25C credits expired for property placed in service after December 31, 2025. The Residential Clean Energy Credit (Section 25D), which covered solar panels, battery storage, and geothermal heat pumps at 30% with no dollar cap, also expired at the end of 2025 under the OBBBA.

What Should Homeowners Do Now?

Your next step depends on where you stand.

If you installed qualifying windows in 2025

File your taxes and claim the credit. Gather your invoices, manufacturer certifications, and QM Code, then complete IRS Form 5695 as part of your 2025 tax return. Do not leave money on the table.

If you missed the federal deadline

Start by checking for state and utility rebate programs in your area using the ENERGY STAR Rebate Finder or the DSIRE database. Many of these programs remain active in 2026.

Even without incentives, the long-term math still favors the upgrade. Energy costs continue to climb. Natural gas prices rose significantly in 2025 compared to the prior year, and electricity rates have been outpacing general inflation. Every year you wait to replace inefficient windows is another year of higher energy bills.

When you are ready to move forward

Get quotes from at least three contractors and ask each to break down product costs and labor separately. Verify that the windows you are considering carry the ENERGY STAR Most Efficient designation, as that efficiency tier delivers the best return through energy savings over the life of the product. And for more guidance on planning your project, our guide to choosing the right replacement windows can help you evaluate your options.

Important: This guide provides general information only and is not intended as tax, legal, or financial advice. Tax laws and eligibility rules can change, and your individual situation may vary. Always consult a qualified tax professional or advisor before claiming any federal energy tax credit to ensure compliance with current IRS requirements and to determine what applies to your specific circumstances.

Anna C

Anna has over six years of experience in the home services and journalism industries and serves as the Content Manager at MyHomePros.com, specializing in making complex home improvement topics like HVAC, roofing, and plumbing accessible to all. With a bachelor’s degree in journalism from Auburn University, she excels in crafting localized, comprehensive guides that cater to homeowners’ unique needs. Living on both coasts of the United States has equipped her with a distinctive perspective, fueling her passion for turning any house into a cherished home through informed, personalized decision-making.