You replaced the old single-pane windows with Energy Star certified double-pane units last fall. The house is warmer, the heating bill dropped, and the rooms are quieter. Then a friend mentioned that the windows qualified for a federal tax credit. You had no idea. The paperwork was buried somewhere in the contractor folder, and now you are wondering whether you missed a deadline or left money on the table.
The Energy Star program is an energy-efficiency program established by the U.S. EPA in 1992 (Wikipedia). The federal tax credit for energy efficient home improvements, extended through the Inflation Reduction Act of 2022, allows homeowners to claim 30 percent of the cost of qualifying windows and doors, up to an annual maximum of $600 for windows and $500 for doors. The credit applies to products installed from 2023 through 2032.
The energy efficient windows and doors tax credit covers qualifying products installed in your primary residence. Here is what qualifies, how much you can claim, which forms to file, and the mistakes that cause the IRS to reject the claim.
What Is the Energy Efficient Home Improvement Tax Credit
The energy efficient home improvement tax credit, officially called the Energy Efficient Home Improvement Credit, is a federal tax credit that covers 30 percent of the cost of qualifying energy-efficient products installed in your primary residence. Unlike a deduction, a tax credit reduces your tax bill dollar for dollar.
The credit was expanded and extended by the Inflation Reduction Act of 2022. It applies to products placed in service from January 1, 2023, through December 31, 2032. The credit is nonrefundable, which means it can reduce your tax bill to zero but any excess credit amount is not refunded to you. Unused credit amounts cannot be carried forward to future tax years.
For windows and doors specifically, the credit is limited to products that meet the Energy Star Most Efficient certification criteria. This is a higher standard than the standard Energy Star label. The product must have a certification from the National Fenestration Rating Council confirming that it meets the required energy performance ratings.
Credit Limits and Percentages — How Much You Can Claim
The energy efficient windows and doors tax credit covers 30 percent of the product cost, not including installation labor. The annual limits are applied per taxpayer, not per home. A married couple filing jointly has the same limits as a single filer.
| Product | Credit percentage | Annual maximum |
| Windows (all types) | 30% | $600 total |
| Exterior doors | 30% | $500 total (all doors combined) |
| Skylights | 30% | $600 total |
The $600 window limit applies to all windows installed in a single tax year. If you install eight windows at $500 each, the total cost is $4,000. Thirty percent of that is $1,200, but the credit is capped at $600. The remaining $600 of potential credit is not available in future years.
The $500 door limit covers all exterior doors combined — entry doors, patio doors, and garage doors. If you install one $800 door and one $1,200 door, the total cost is $2,000. Thirty percent of that is $600, but the credit is capped at $500. The door limit is per taxpayer per year, not per door.
Which Windows Qualify for the Credit
Not all Energy Star windows qualify for the tax credit. The product must meet the Energy Star Most Efficient certification criteria, which are more stringent than the standard Energy Star requirements. Understanding the difference prevents buying windows that carry the Energy Star label but do not qualify for the credit.
For windows in the northern climate zone, the qualifying criteria are a U-factor of 0.20 or lower and a solar heat gain coefficient of 0.40 or lower. For the north-central zone, the requirements are a U-factor of 0.22 or lower and an SHGC of 0.40 or lower. For the south-central and southern zones, the U-factor requirement varies, but the SHGC must be 0.25 or lower.
The National Fenestration Rating Council label on the window provides these numbers. Look for the U-factor and SHGC ratings printed on the NFRC sticker. If the sticker is missing or the numbers do not meet the thresholds for your climate zone, the window does not qualify regardless of what the salesperson says.
Installation costs — labor, old window disposal, and trim work — are not included in the credit calculation. Only the cost of the window units themselves counts toward the 30 percent credit. If a contractor quotes $800 per window installed and the window unit cost is $500, only the $500 counts for the credit.
Which Doors Qualify for the Credit
Exterior doors that meet the Energy Star Most Efficient criteria qualify for the energy efficient windows and doors tax credit. The requirements differ by door type and climate zone.
Entry doors must have a U-factor of 0.20 or lower in northern and north-central zones, and 0.25 or lower in south-central and southern zones. The door assembly includes the door slab, frame, and threshold. If the door has a glass panel, the glass must meet the same U-factor and SHGC requirements as qualifying windows.
Patio doors — sliding glass doors and French doors — must meet the same criteria as windows. The U-factor and SHGC requirements match those for windows in the same climate zone. A qualifying patio door in the northern zone needs a U-factor of 0.20 or lower.
Garage doors qualify if they are insulated and meet the Energy Star Most Efficient criteria. The door must have an R-value of 10 or higher and meet the air leakage requirements specified by the program. Garage doors are included in the $500 annual door limit, not in the window limit.
Storm doors qualify if they meet the Energy Star Most Efficient requirements and are installed over a qualifying exterior door. The storm door must have a U-factor of 0.20 or lower and self-storing features that allow the glass and screen to be changed without removing the door.
A tax professional who specializes in energy credits explained: “The biggest mistake I see is people claiming the credit for standard Energy Star windows. The credit requires the higher Most Efficient certification. Check the NFRC sticker before you buy, not after.”
How to Claim the Credit — Forms and Documentation
Claiming the energy efficient windows and doors tax credit requires filing IRS Form 5695 with your annual tax return. The form calculates the credit amount and transfers it to your Form 1040.
The first section of Form 5695 lists the qualifying property and the amounts paid. You enter the total cost of qualifying windows, the total for doors, and the totals for any other qualifying improvements like insulation, heating systems, or water heaters. The form calculates 30 percent of each category and applies the annual limits.
The documentation required includes the manufacturer’s Energy Star certification statement, which is usually printed on the product packaging or included in the installation paperwork. The NFRC label showing the U-factor and SHGC ratings must be kept with your tax records. The receipt showing the product cost — not the installation labor — is also required.
The credit is claimed for the tax year in which the products were installed, not the year they were purchased. If you bought windows in December 2025 but they were installed in January 2026, the credit goes on your 2026 tax return. Installation is defined as the date the products are placed in service in your home.
Common Mistakes That Disqualify Your Claim
The most common mistakes that cause the IRS to deny the credit include:
- Wrong certification — claiming for standard Energy Star instead of Energy Star Most Efficient; check the NFRC sticker
- Including labor costs — only the product material cost qualifies; installation labor does not count
- Wrong property type — the credit applies only to the taxpayer’s primary residence, not rentals or second homes
- Exceeding annual limits — window credit caps at $600 per year, door credit at $500 per year
- Missing documentation — keep NFRC labels and receipts with your tax records for at least three years
The second most common mistake is including installation labor in the product cost. Only the material cost of the window or door unit qualifies. If the invoice does not separate materials from labor, the IRS may disallow the entire claim. Request an itemized invoice from the contractor.
The third mistake is claiming the credit for a rental property or a second home. The credit is available only for the taxpayer’s primary residence. Vacation homes, rental properties, and investment properties do not qualify.
The fourth mistake is exceeding the annual limits. Installing $3,000 worth of windows and $2,000 worth of doors in the same year does not mean $1,500 in credits. The window credit is capped at $600, and the door credit is capped at $500, for a total of $1,100 regardless of how much was spent above those limits.
The fifth mistake is failing to keep documentation. The IRS may ask for proof of the Energy Star Most Efficient certification. If you cannot produce the NFRC label or the manufacturer’s certification statement, the credit may be denied during an audit. Keep all paperwork with your tax records for at least three years.
Frequently Asked Questions
How much is the tax credit for energy efficient windows and doors?
The credit is 30 percent of the product cost. Windows are capped at $600 per year. Doors are capped at $500 per year combined.
Do all Energy Star windows qualify for the tax credit?
No, only Most Efficient certified windows qualify. Standard Energy Star windows do not meet the credit threshold.
Does installation labor count toward the tax credit?
No, only the product material cost qualifies. Labor, disposal, and trim work are not eligible for the credit.
How many windows can I claim on the tax credit?
No limit on window count. The credit caps at $600 total per year for all windows combined.
Is this a tax credit or a tax deduction?
It is a tax credit. It reduces your tax bill dollar for dollar. A deduction only reduces the income subject to tax.
Do garage doors qualify for the energy tax credit?
Qualifying garage doors count toward the door credit. The annual limit is $500.
What IRS form do I use to claim the energy credit?
File Form 5695 with your annual tax return. The form calculates the credit amount and transfers it to your Form 1040 for the tax year of installation.
Can I claim the credit for windows in a rental property?
No, the credit is only for your primary residence. Rental properties and second homes do not qualify.