2023 Window & Door Tax Credit

IMPORTANT: Federal Tax Credits for efficient windows, skylights, and patio doors have changed significantly as of January 1, 2023, as part of the Inflation Reduction Act of 2022. Because the IRS has not yet issued detailed guidance on which products qualify for tax credits, Renewal by Andersen strongly recommends consulting with a tax advisor and/or the IRS to determine whether specific products and applications may qualify for tax credits. 

• Credit may be available under Section 25C of the Internal Revenue Code for qualifying products purchased and installed during the tax year.

• Tax credit applies to the cost of the product only. The credit does not include installation costs.

• As of 1/1/2023, tax credit is up to 30% of the amount paid up to the maximums listed below.
  • $1,200 total annual tax credit for any and all improvements, including other eligible items as listed in Section 25C of the Internal Revenue Code.
  • $600 total annual maximum tax credit for qualifying windows and skylights.
  • $250 total annual maximum tax credit for a single qualifying exterior door and $500 total annual maximum credit for all qualifying exterior doors.
    
     

• Windows and Skylights – As of 1/1/2023, windows and skylights must meet ENERGY STAR Most Efficient criteria to qualify for tax credits under Section 25C. For more information about Energy Star Most Efficient program and requirements by product and climate zone, see the EPA ENERGY STAR Most Efficient Website. 

• Exterior Doors – As of 1/1/2023, doors must meet the ENERGY STAR criteria applicable to the climate zone in which the products are installed.
  • ** Note that on 10/23/2023, ENERGY STAR Windows Version 7.0 goes into effect, implementing new requirements for exterior doors. It is unclear what version of ENERGY STAR exterior doors must comply with to qualify for tax credits; Andersen recommends consulting with a tax advisor to determine whether products purchased for a particular application qualify. For more information about ENERGY STAR Version 7.0 and requirements by climate zone, see the ENERGY STAR Version 7.0 Website) 
    

• Find more information at www.energystar.gov or call (888) STAR-YES/ (888-782-7937)
• Visit ENERGY STAR to determine your ENERGY STAR Climate Zone 

1. Purchase and install qualifying windows or patio doors beginning January 1, 2023 through December 31, 2032

2. Save your paid sales receipt and your product labels (showing the NFRC U-factor/SHGC ratings and ENERGY STAR) with your tax documents.

3. Save your product performance labels (showing the NFRC U-factor ratings/SHGC and ENERGY STAR)  from your window(s) or door(s) or take a photo of the labels on your windows(s) and door(s) and keep it with your tax documents. Andersen and Renewal by Andersen do not reprint product labels for tax credit verification.
 
4. Claim the tax credit associated with your qualifying purchase and installation on your Federal filing for the applicable tax year.

* This is a summary of certain tax credit elements related to windows, skylights and doors as set forth in Section 25C of the Internal Revenue Code as modified by the Inflation Reduction Act of 2022, Public Law No. 117-169, which was signed by the President on August 16, 2022, which among other things, extends the current tax credits with amendments in Section 25C of the Internal Revenue Code on eligible property purchased and installed through December 31, 2032. Andersen bears no responsibility for determining whether a particular purchase or application qualifies for the tax credit. Further, Andersen does not intend to and is not providing legal or tax advice. Andersen recommends that purchasers consult with their own tax advisor and/or the IRS to determine whether products purchased for a particular application qualify for the tax credit.