Window Tax Credit 2026: Why It Ended and What's Left
For several years, homeowners could claim a federal tax credit for installing energy-efficient windows. That credit is now gone for new projects.
The federal Energy Efficient Home Improvement Credit (IRS Section 25C) ended for any property placed in service after December 31, 2025. It was cut short by the One Big Beautiful Bill Act, signed in July 2025. Before that law, the credit was scheduled to run through 2032.
TheRemodelers works with licensed window contractors and energy efficiency professionals to help homeowners understand what this change means. This guide covers:
Who can still claim the credit
How the credit worked for 2025 installations
What savings are still available for 2026 window projects
The Short Answer
Windows installed in 2026 or later: No federal tax credit is available.
Windows installed in 2025: You may still be able to claim the credit on your 2025 federal tax return.
State and utility programs: These are separate from the federal credit and may still offer rebates in your area.
Why the Installation Date Is What Counts
The credit is based on when the windows were placed in service, meaning fully installed and working. It is not based on when you paid for them or signed a contract.
Installed on or before December 31, 2025: Eligible, if the windows meet all other requirements.
Installed January 1, 2026 or later: Not eligible, even if you ordered or paid for the windows in 2025.
How to Still Claim the Credit for 2025 Installations
If your qualifying windows were installed in 2025, you can claim the credit on your 2025 federal return using IRS Form 5695.
If You Haven't Filed Yet
If you're on a filing extension, include Form 5695 with your 2025 return.
If You Already Filed Without It
You may be able to file an amended return to add the credit. The IRS generally allows amended returns within three years of the original filing date.
What to Gather
Receipts showing the window product cost, separate from labor
Proof the windows were installed in 2025
Documentation showing the windows were ENERGY STAR Most Efficient certified
The manufacturer's Qualified Manufacturer Identification Number (QMID) and Product Identification Number (PIN)
A tax professional can confirm whether your project qualifies and help you file correctly.
How the Credit Worked for 2025 Installations
These rules apply only to windows installed in 2025.
Credit Amount
Rate: 30 percent of qualifying costs
Window cap: $600 per year for windows and skylights combined
Overall cap: $1,200 per year for windows, skylights, exterior doors, insulation, and electrical panel upgrades together
Heat pumps: A separate $2,000 annual cap
Product Cost Only
The credit applied to the window product only. Installation labor, sales tax, and permit fees were not eligible.
Example: On a $2,000 window replacement where the windows cost $800 and labor cost $1,200, the credit was 30 percent of $800, or $240.
ENERGY STAR Most Efficient Required
Windows had to meet ENERGY STAR Most Efficient criteria. This is a higher tier than standard ENERGY STAR certification. A window with the regular ENERGY STAR label did not qualify.
Other Requirements
Manufacturer IDs: For products installed in 2025, the manufacturer had to be registered with the IRS and provide a QMID and PIN.
Principal residence: The home had to be your main home, not a rental or vacation property.
Non-refundable: The credit could reduce your tax bill to zero, but not below it.
No carryforward: Unused credit could not be carried to a future year.
What It Meant for a Whole-House Project
For a 15-window replacement, qualifying product costs might run $6,000 to $12,000. Thirty percent of that is $1,800 to $3,600. But the $600 annual cap meant the homeowner could claim only $600.
What's Available for 2026 Window Projects
Without the federal credit, here's where homeowners can still find savings.
State and Utility Rebates
Some states and local utilities run their own energy efficiency programs. These are separate from the federal credit, and some may cover windows. Availability varies widely by location.
Check your electric and gas utility's website for rebate programs.
Search the DSIRE database at dsireusa.org for incentives in your state.
Ask your window contractor which local programs they've seen homeowners use.
Lower Energy Bills
Efficient windows still reduce heating and cooling costs and improve comfort. Those savings continue for the life of the windows, with or without a tax credit.
Why ENERGY STAR Still Matters
You no longer need ENERGY STAR Most Efficient windows to qualify for a federal credit. But ENERGY STAR certification is still a useful guide when choosing windows.
Climate-matched performance: ENERGY STAR sets U-factor and solar heat gain requirements by climate zone, so certified windows are rated for your region.
Rebate eligibility: Many state and utility programs require ENERGY STAR certification.
Comfort: Better-performing windows reduce drafts and cold spots near the glass.
For more on choosing windows, see these guides:
Final Thoughts
The federal window tax credit ended for windows installed after December 31, 2025. If you installed qualifying windows in 2025, you may still be able to claim up to $600 on your 2025 return.
For 2026 projects, plan your budget without a federal credit. Check state and utility programs, and choose ENERGY STAR windows for long-term energy savings. Tax laws can change, so confirm current rules with a tax professional before you file.
When you are ready to get estimates from licensed contractors in your area, contact Home Upgrade Pros or call: (725) 313-0738 to connect with professionals who offer free no-obligation assessments.
Frequently Asked Questions
Is there a federal tax credit for energy-efficient windows in 2026?
No. The federal Energy Efficient Home Improvement Credit (Section 25C) ended for windows placed in service after December 31, 2025. Windows installed in 2026 do not qualify.
Can I still claim the credit for windows installed in 2025?
Yes, if the windows met all requirements and were fully installed by December 31, 2025. Claim it on your 2025 federal return with IRS Form 5695. If you already filed without it, you may be able to file an amended return.
What if I bought windows in 2025 but they were installed in 2026?
They do not qualify. Eligibility is based on when the windows were placed in service, meaning fully installed, not when you bought them.
How much was the window tax credit worth?
For 2025 installations, the credit was 30 percent of the window product cost, capped at $600 per year for windows and skylights combined. Installation labor was not eligible, and windows had to be ENERGY STAR Most Efficient certified.
Are there other incentives for replacement windows?
Some state and local utility programs offer rebates for energy-efficient windows. Availability varies by location. Check with your utility or search the DSIRE database at dsireusa.org.
