new window tax creditDid you know that if you’re considering replacing your windows that you could get a new window tax credit? It’s part of the larger energy efficient home improvement tax credit program. The key is choosing energy efficient windows that qualify. And, if you’re also needing new doors, there’s a tax credit for those as well. Here’s what you need to verify before choosing your replacement windows and doors.

Not All Windows Are Eligible

Most local window companies only sell and install windows that meet the local ENERGY STAR™ guidelines. However, if you plan a DIY window replacement and just pick up new stock windows at a home improvement store, they may not qualify. The key in this tax credit is that the windows (and doors) must meet the Energy Star Most Efficient certification requirements. Be sure to ask your window company if the windows you are considering meet that guideline if you want to claim the tax credit.

The Credit Has an Annual Limit

Although your replacement windows will likely cost several hundred dollars each, sadly there is an annual limit of $600 for windows and $250 for each door with a $500 total door limit. However, there are ways to maximize your credit. For example, if you have several rooms in your home that are colder or draftier than others, replace those windows this year and then move on to the rest of your home next year. That would allow you to claim the full $600 each year. Keep in mind that the total household credit for energy efficient home improvements is $1200 per year. (There are other things that qualify such as adding insulation.) However, there is no lifetime limit as this credit is valid through the 2032 tax year.

Blair Windows & Doors Can Help

If you’re unsure about the window replacement process and want to make sure your choice qualifies for the new window tax credit, call us. One of our team members will share options that meet your style and material preference and stay within your budget. We’ll provide you with the documentation you need for your new window and door tax credit. Call (317) 356-4666 or fill out our contact form to schedule your free consultation and quote.

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