Can I Get Energy Rebates by Replacing my Windows?

Published on Monday August 31, 2015

Replacing the windows in your home provides substantial benefits — enhanced curb appeal, improved energy efficiency, and increased home security, to name a few.

Thanks to their energy efficiency, there are tax incentives and rebates for new windows to help homeowners offset costs. In this article, we’ll tell you about the potential ways you can save on your taxes when you replace your windows.

Federal Tax Credits for Energy-Efficient Windows

If you install new energy-saving windows, you can get back up to 30% of the cost through tax credits. For example, if you spend $10,000 on these upgrades, you could get $3,200 back when you file your taxes.

Extra Benefits for Clean Energy

If you add solar panels or other clean energy equipment to your home, you can get a tax credit of 30% of the cost.

Claiming Credits for 2023 Improvements

If you made any energy-saving improvements to your main home in 2023, such as installing new windows, you may be able to claim these tax credits when you file your taxes for that year.

Remember, these are general guidelines and it’s always a good idea to talk to a tax professional for advice specific to your situation. For more information, visit the ENERGY STAR website.

How Do I Know if My State Offers Rebates for New Windows?

To find out what tax credits or rebates are available for energy-efficient window installations or other home improvements in your state, follow these steps:

Step 1: Visit the DSIRE Website and Search by State

Go to the Database of State Incentives for Renewables & Efficiency (DSIRE) website at www.dsireusa.org. On the homepage, you’ll find an option to search for policies and incentives by state. Enter your state in the search field.

Step 2: Review the List of Incentives

Once you select your state, you’ll be presented with a list of available incentives and policies. This list includes various types of incentives, not just those for window installations.

Use available filters or browse through the list to find incentives specifically related to energy-efficient window installations. Look for keywords like “windows,” “energy efficiency,” “home improvements,” or “rebates.”

Click on each incentive that seems relevant to get more details. This will provide you with specific information about the incentive, including eligibility criteria, the application process, and the benefits offered.

Step 3: Check Eligibility and Requirements

Carefully read the eligibility requirements to ensure that you and your project qualify for the incentive. Also, note the application process. This may involve filling out forms, providing proof of installation, or meeting certain energy efficiency standards.

Step 4: Ask For Help if You Need it

If you have questions or need clarification, contact the program administrators directly. Contact information is usually provided on the incentive page.

Consulting with a tax professional or an energy efficiency expert is another way to gain clarity around program requirements. They can provide advice tailored to your specific situation and help maximize your benefits.

Home Improvements Can Lower Your Taxes If You Sell Your Home

All home improvements can help reduce the amount of taxes you pay when you sell your home for a profit. This is because home improvements increase what’s known as the basis of your home.

Your “Basis” is the amount of your investment in your home for tax purposes. The greater your basis, the less profit you’ll receive when you sell your home and the less you will pay in taxes on the sale.

Here’s an example: Joe bought a home in 2010 for $400,000, then sold it in 2023 for $800,000. From 2010-2023 Joe made $60,000 worth of investments, including a new roof and a set of new replacement windows.

This increased his basis to $460,000. If he subtracts the basis from the sale price, his gain from the sale is $340,000.

Because Joe is only taxed on the gain from the sale, he has lowered the amount of taxes he has to pay because he increased his basis. In fact, if Joe qualifies for the home sale tax exclusion, he will only pay taxes on $240,000 of his gain.

Choose Long Windows For Your Window Replacement

Long Windows is a family-owned business with over 7 decades of experience and a proven record of customer satisfaction in the Mid-Atlantic, New England, Pennsylvania, and Florida. We understand how important home improvement investments are, and we work with all of our customers to create custom window projects tailored to their specific needs.

If you need assistance paying for your new windows, we offer stress-free financing with easy-to-understand terms and no hidden fees — ever. Long Windows also provides a Limited Lifetime Warranty that covers all labor and materials on all installations. If you have any issues with your new windows, rest assured that we’ll make it right.

Ready to learn more? Contact us to get started and receive a free estimate today!