Every year, the Federal government gives homeowners tax credits for specific home improvements. Although the official 2024 tax credits for window installation have not yet been officially released, we know they’re coming. There’s a good chance they’ll look much like the tax credits over the last few years.

Tax credits are a great incentive for making necessary window replacements for your house. While there are many benefits of adding energy-efficient windows to your house, saving money on taxes is just another great reason to make the switch. 

In this Window World Twin Cities guide, you’ll learn all you need to know about tax credits for energy-efficient windows and other home exterior improvements.

Overview of Energy Efficient Tax Credits in 2023/2024

While the IRS hasn't released the exact numbers for 2024, they will likely be very similar to the 2023 numbers. According to the IRS, you can receive a tax credit of up to $3,200 for energy-efficient home upgrades. 

As of Jan 1, 2023, the tax credit is up to 30% of the cost of some expenses, as long as they qualify. Now, let’s look at the cost breakdown for tax incentives based on the type of home improvement. 

Windows

If you replaced any double-hung, casement, or egress windows or installed windows on a new home that meet Energy Star standards, you may be eligible for a tax credit. Replacements can be partial, meaning we don’t have to remove and replace every window or door. 

You can also claim a credit if we carve out a new space for a window that wasn’t there before. The credits may be as high as 30% of the cost, up to $600 for windows.

Remember that these tax incentive numbers only apply to an existing home you’re improving, not to a new home. 

Doors

If you replaced any entry doors, garage doors, or interior doors that meet Energy Star standards, you might be eligible for a tax credit. Replacements can be partial, meaning we don’t have to remove and replace every window or door. 

You can claim a credit if we create a new space for a door that wasn’t there already. The credits may be as high as 30% of the cost or up to $500. You can receive up to $250 per door but not beyond $500, based on the rules for 2023. 

How to Get Home Improvement Tax Credits

If you'd like to take advantage of the U.S. Government's tax credits for energy-efficient windows, you need to look for two labels: the blue-and-yellow Energy Star label and the white National Fenestration Rating Council (NFRC) label. 

The NFRC is a nonprofit, industry-recognized certification board for windows and doors. Their label offers raw numbers; Energy Star tells you whether or not those numbers mean a better-performing window.

In order for your windows to qualify for the tax credit, two of the NFRC numbers must be equal to or less than 0.3: U-factor and the solar heat gain coefficient (SHGC). These are the only numbers that matter. 

Some manufacturers will only test the glass itself; however, other things like the frame, weather stripping, and so on can affect the efficiency values. You'd do best to ignore manufacturer values and concentrate on Energy Star and NFRC. Here's what to look for.

U-Factor

The U-factor range is from .20 to 1.20; the lower the number, the better. A low U-factor means that less heat escapes during the winter, which is extremely important in our frigid Minnesota climate.

SHGC

This has a range of 0 to 1, where the lower the number, the less solar radiation (and heat) the window allows inside.

How to File Your Tax Credit Deduction

If you plan to claim your tax credit, then fill out an IRS Form 5695 (PDF) with your 2023 taxes. Keep a copy of the Certification Statement from the manufacturer and any receipts from the manufacturer or Window World. 

To find out updated information after January 1st, 2023, we recommend that you visit the Energy Star website. You can also ask a qualified accountant or financial advisor for more information while filing your taxes. 

Learn more about the 2023 energy-efficient home improvement credit

Upgrade to Energy Efficient Windows! 

Contact us today to discuss your plans for new windows and schedule an appointment for your free in-home estimate. We put our good reputation on the line every time we do a new job, and we make sure to do it perfectly. Not only does our good work benefit your home, but it continues to establish us as the premier window source in the U.S.

We are now scheduling winter, spring, summer, and fall installations. If you are planning to replace your windows, doors, or siding, contact us today and add your project to the calendar. Window World MN  provides complete installation, repair, and replacement of all residential properties in the Minneapolis and St. Paul, Minnesota area. 

Call us today at 651-770-5570, or you can message us on our contact page.

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