How to Save Money on Windows and Doors with Energy Tax Credits

The Inflation Reduction Act of 2022 (IRA), which extends the Energy Efficient Home Improvement Credit, is a recent law that aims to curb inflation by investing in domestic energy production while promoting clean energy. One of the provisions of the IRA that’s particularly relevant to homeowners is the clean energy incentive for those who upgrade to qualifying energy-efficient windows and doors.

The enhanced IRA expands the program through 2032 and replaces the lifetime limit with an annual limit on all energy efficient home improvement credits, including windows and doors. For eligible products installed between January 1, 2023 and December 31, 2032, the guidelines and benefits are even better. For windows, you can claim 30% of the product cost with an annual maximum of $600. For doors, you can also claim 30% of the product cost, with a limit of $250 per door and an annual maximum of $500. This is great news for homeowners as you can claim this annual maximum every year that you make eligible improvements until 2033.

You don’t have to replace all the windows and doors in your home to qualify for the tax credit, but the home improvements do need to be made on an existing structure that is your primary residence and located in the United States.

The credit can be claimed by filing Form 5695, Residential Energy Credits Part II with your tax return. The instructions to Form 5695 detail additional documentation and requirements to consider.

Consult your tax advisor on your eligibility and to maximize your benefit.

For additional information, download our Energy Tax Credit Statement.

To qualify for the credit, the windows and doors must meet certain energy efficiency standards. Dependent on the climate zone of the home, exterior windows must meet ENERGY STAR Most Efficient criteria, while exterior doors must meet specific U-Factor and solar heat gain coefficient (SHGC) requirements. There are many factors to consider if you want energy-efficient windows and doors.

You can find more information about the energy efficiency requirements and which Pella products may qualify in your region by visiting the Internal Revenue Service (IRS) website and EnergyStar.gov.

Each taxpayer’s situation is unique and Pella bears no responsibility for determining whether a particular purchase or application qualifies for the tax credit. Pella does not provide tax and legal advice; we encourage you to consult your tax advisor on whether a specific purchase qualifies based on your circumstances.

Replacing your windows and doors is a big investment, but it can save you money in the long run. Energy-efficient windows and doors can potentially help you lower both your energy bills and taxes. If you're considering window or door replacement, be sure to factor the tax credit in your decision. You could save hundreds or even thousands of dollars over time.If you’d like to learn more about tax credits for windows and doors, visit the IRS website or reach out to a tax professional. Schedule a free consultation with a Pella expert when you are ready to replace the windows and doors in your home with qualifying, energy-efficient products.