Tax Credit for Replacing Windows and Doors

When it comes to remodeling, windows and doors are probably not what you spend your days dreaming about.

When it comes to remodeling, windows and doors are probably not what you spend your days dreaming about.  And, while you may not have a Pinterest board dedicated to window and door inspiration, there are actually a number of reasons to upgrade your windows and doors.  In addition to providing a new, updated look for your home, they also often improve energy efficiency and because of this, homeowners may even enjoy tax benefits from making the upgrade.  Installing Energy Star certified windows and doors will help you save money on utilities and by opting for eco-friendly choices, it will put a little more money back in your pocket thanks to tax credits.

During seasonal peaks when we watch our heating and cooling bills go up and up…and up, we all wish we could be saving a little more money on utility bills.  There are a variety of ways to make energy efficient improvements to your home but one of the biggest ways that will have a significant and very noticeable impact on bills is upgrading windows and doors.  Heating and cooling loss/gain is often the result of poorly sealed and poorly insulated windows and doors.  For example, Energy Star points out that Energy Star qualified windows “lower energy bills and save you money over single-pane and even new double-paned, clear-glass windows.”  For a typical home, when you choose Energy Star to replace single-pane windows you will save between $126 – $465 pear year.  And, when you choose Energy Star to replace double-pane, clear glass windows, you will save $27 – $111 pear year.  In addition to saving you money by lowering utility bills, you will enjoy increased comfort within your own home.  Rather than feeling drafty, or overheated, Energy Star windows and doors help your home remain a consistent and comfortable temperature.

Beyond increased comfort and savings on utility bills, the Federal government also incentivizes homeowners to remodel with energy-efficient windows and doors. There is a Federal Tax Credit of 10% of the cost of new, Energy Star qualified windows and doors.  There is a total credit limit of $200 for windows and skylights, and up to $500 for doors for all years since 2005 (cumulative maximum tax credits for windows, doors, and skylights for all years combined is $500).  For purposes of figuring out what your credit will be, do not include labor costs when calculating.  All work must be completed by December 31st,  2016 so it is important to speak to your trusted contractor or handyman as soon as possible to take advantage of these window and door replacement tax incentives and start enjoying a more comfortable, energy-efficient and eco-friendly home as soon as possible.