Federal tax credits for energy efficient windows and exterior doors were extended through 2014. If you purchased and installed qualified new doors or windows from 2012 to 2014, you may be able to take advantage of these tax credits.
The following guidance is not intended as legal advice. It is recommended that you visit www.irs.gov or consult a tax professional with specific questions
For windows and doors placed into service between January 1, 2012 and December 31, 2014, you may be eligible to receive tax credits as follows:
- For windows, get a tax credit equal to 10% of the product cost up to $200
- For exterior doors, get a tax credit equal to 10% of the product cost up to $500
- Note that the tax credit only applies to the cost of the window, not installation costs
Glossary of Terms
U-Factor: The amount of heat flowing through a product. The lower the number, the more energy efficient the product is.
Solar Heat Gain Coefficient (SHGC): The ability to block heat generated by sunlight. The greater the blockage, the lower the SHGC.
National Fenestration Rating Council (NFRC): This organization conducts tests for energy efficiency based on the entire product, not just the glass.
ENERGY STAR: A government-backed program helping businesses and individuals protect the environment through superior energy efficiency.
Products That Qualify
To qualify for the tax credit, windows and exterior doors must be:
- ENERGY STAR qualified in the region where they will be installed. Click to see ENERGY STAR zones and requirements.
- Used to improve an existing home. This tax credit does not apply to new homes.
- Placed in service between January 1, 2012 and December 31, 2014. "Placed in service" is defined as when the property is ready and available for use.
- Installed in the taxpayer's primary residence.
How to Receive Your Tax Credit
Step 1: Consult your tax advisor. The tax credit is subject to a "Lifetime Limitation" of $500 ($200 for windows/skylights) in aggregate credits that a homeowner can claim from January 1, 2006 to December 31, 2014. So if you have already claimed more than $200 in window tax credits since 2006, you should not apply for the credit under this extension.
Step 2: Purchase qualifying windows and/or exterior doors. Look for the NFRC label on your product and make sure the U-Factor and SHGC ratings comply with the ENERGY STAR requirements for your region.
Step 3: Keep the receipts showing the purchase price of the qualifying products – excluding installation charges – and save the NFRC label from each window or door. Keep these with your tax materials in case of an audit.
Step 4: Download your Manufacturer's Certificate Statement and keep it with your tax records.
Step 5: Submit the credit with your taxes for the year the windows and/or doors were installed.