2024-2025 Window Tax Credit: What You Need to Know

Thanks to the Inflation Reduction Act, homeowners can claim significant tax credits for energy-efficient window replacements through 2032. Here's what you need to know.

The Basic Numbers

According to the Internal Revenue Service (IRS), the Energy Efficient Home Improvement Credit provides:

• **Credit rate:** 30% of project cost
• **Annual cap for windows:** $600 per year
• **No lifetime limit:** Claim up to $600 every year through 2032

This is a tax credit, not a deduction. According to the U.S. Department of Energy, that means it directly reduces your tax bill dollar-for-dollar.

What Qualifies

Not all energy-efficient windows qualify. According to ENERGY STAR and IRS requirements, windows must meet the ENERGY STAR Most Efficient criteria for your climate zone.

For Idaho (Northern Climate Zone), that means:

• **U-factor:** ≤ 0.20

This is stricter than standard ENERGY STAR certification. According to ENERGY STAR, only about 15-20% of certified windows meet the "Most Efficient" threshold.

What Costs Count

According to IRS guidance, the 30% credit applies to:

• The cost of the windows
• Installation labor
• Sales tax

It does not cover financing interest, extended warranties, or cosmetic trim work.

The Key Requirements

According to the IRS, to claim the credit:
1. Windows must be installed in your existing primary residence (not new construction or rentals)
2. You must have the manufacturer's certification statement
3. File IRS Form 5695 with your tax return

The Bottom Line

If you're replacing windows anyway, qualifying for the tax credit can save you up to $600 per year. Just make sure you're purchasing windows that meet the ENERGY STAR Most Efficient standard—not just basic ENERGY STAR.

*For complete details including documentation requirements, see: [Window Tax Credits Guide](/guides/window-tax-credits-guide)*