The recently signed Inflation Reduction Act, which took effect on January 1st, 2023, is creating energy efficiency rebates and tax credits for all kinds of home upgrades. This means window and door replacements with great energy savings can benefit you and your family in 2023. Let’s discuss which energy-saving tax credits will be available.
If you made any qualifying home improvements to your primary residence after December 31, 2021, you may be eligible to claim them on your taxes when you file for 2022. Receive a tax credit of up to $500 if you installed energy-efficient windows, skylights, doors, or other qualifying items.
The clean energy tax credits encourage homeowners to invest in energy efficiency improvements through:
- The energy-efficient home improvement credit for certain investments that reduce energy consumption in homes
- The residential energy tax credit for investments in renewable energy production at taxpayers’ residences.
New 2023 Tax Credit Changes
The Residential Clean Energy property credit provides a 30% income tax credit for clean energy equipment such as rooftop solar, wind energy, geothermal heat pumps, and battery storage. Improvements like insulation, replacement doors, replacement windows, electrical panel upgrades, and more are covered by the tax credits.
Last year, the 2022 Tax Credit for installing efficient windows and doors was only 10% of the product cost with a maximum credit of $500. Now in 2023, it has significantly increased to 30% of the product cost with a maximum credit of $1100. (The total maximum credit is $1200, however, windows and doors combined are capped at $1100.)
- Exterior doors: 10% of the cost in 2022; updated in 2023 to 30% of the cost, up to $500 for doors (up to $250 each)
- Windows, including skylights: 10% of the cost in 2022; updated in 2023 to 30% of the cost, up to $600
With this increase in the percentage, even smaller construction projects can reach the maximum credit. This can help your family save money on monthly energy bills for years to come.
Energy-Efficient Windows & Doors
If you’ve significantly reduced heating and energy costs in your home, you can qualify for the credits with exterior doors meeting applicable Energy Star-certified requirements, and windows meeting Energy Star’s most efficient certification requirements. The National Fenestration Rating Council (NFRC) helps you compare energy-efficient windows, doors, and skylights by providing you with energy performance ratings in multiple categories.
Custom Windows of Texas are committed to choosing manufacturers that offer the highest quality and warranty guarantee. Every window and door we sell meets Energy Star status and qualifies for the tax credit. With our selection and skilled expertise, you can trust that any framing materials and insulating glass used in your home will enhance your home’s energy efficiency and appearance.
Incentives to Make Your Home More Efficient in 2023
These energy-efficient window and door tax credits are something for every homeowner and buyer to consider. Feel more comfortable, safe, and secure in your home, and enjoy great energy performance in 2023.
If you’re looking to replace windows or exterior doors in your home to be more energy efficient, get in touch with our experts at Custom Windows of Texas for a quality installation.