February 9, 2023

Energy-Efficient Window and Door Tax Credit Guide: 2023 Update

Many homeowners struggle to keep their energy bills reasonably low because of their exterior windows and doors. Air seeps through poorly installed entryways or structures that lack sufficient caulking or weatherstripping. Installing energy-efficient upgrades is an excellent way to maximize the energy efficiency of your existing home.

The 2022 Inflation Reduction Act introduced direct savings, beginning with 2023 tax credits and rebates, for homeowners who make cost-saving energy efficiency improvements to their homes. These include energy-efficient improvements such as door and window replacement as part of the new Energy Efficient Home Improvement Credit, which extends and enhances the credit formerly known as the Nonbusiness Energy Property Credit.

Qualifying homeowners can also this credit to save money on energy-efficient windows and doors. The window and door tax credit applied to TBS Design Gallery's windows and doors will ensure that your home has adequate residential energy conservation and optimal savings.

Learn more about tax credits you can claim for installing exterior doors and windows that meet Energy Star requirements.

What Is the Energy-Efficient Window and Door Tax Credit?

The federal government offers tax credits to owners of residential and commercial properties who maximize energy efficiency. One of the primary federal tax credits that homeowners often overlook is the tax credit for doors and windows.

The federal tax credit for 2022 gives homeowners a 30% tax credit worth up to $1200 if they install energy-efficient features such as windows and doors. However, not all doors and windows are eligible for tax credits. Qualified structures must meet the U.S. Department of Energy's standards for energy efficiency, which Energy Star products also follow.

Installing energy-efficient exterior windows and doors offers savings in two ways. First, you can claim the energy credit and save hundreds of dollars for your new installations. Second, the new windows and doors you put into your primary residence will result in residential energy savings throughout the year because your home won't consume excess energy to maintain comfortable temperatures.

Why Should Replacement Windows and Doors Have an Energy Star Label?

Energy Star is a trusted, government-backed label. Doors and windows will have an Energy Star label if they meet the specific minimum energy efficiency standards created by the U.S. Environmental Protection Agency (EPA).

The initial Energy Star product cost is about the same as other appliances and goods. However, Energy Star items help homeowners save money by reducing electricity consumption and monthly energy bills. It also helps reduce the carbon footprint of a household's primary residence.

What Windows Qualify for the Tax Credit?

You must install new windows that fall within these energy tax requirements:

If your new energy-efficient windows meet those three criteria, you can earn the maximum credit of $600. This applies to replacement windows and new construction.

Which Exterior Doors Qualify for the Tax Credit?

An exterior door installation could also give you credit for your tax return. These installations can be costly, but claiming the tax credit can reduce the total costs from your taxes by a specific percentage. Doors only qualify for tax credits if they:

You can receive a $250 credit for each newly installed door. However, the tax credit maxes out at $500 for all doors.

How Can You Qualify for the Window and Door Tax Credit?

With the current tax credits, you can save hundreds of dollars in credits on your 2022 tax returns by making specific home improvements. To qualify for the energy tax credit, the new windows and doors must meet the Energy Star performance requirements.

Save the products' sales receipts. You'll also need to save a copy of the Manufacturer's Certification Statement or the product's performance sheet.

The information you save from your door and window replacement project is necessary to prove your products' eligibility for the tax credit. When it's time to file taxes, give the documentation to your tax professional to include in your returns for the applicable tax year.

What Are the Limitations of the Tax Credit?

You can only claim the tax credit for the cost of the energy-efficient windows and doors, not their installation costs. The tax credit gives homeowners 30% back of the money paid until the total reaches the tax credit's max amount.

Install Stunning Windows and Doors With TBS Design Gallery

When you're ready to make energy-efficient home improvements and take advantage of the federal window and door tax credit, look no further than TBS Design Gallery. We proudly work with over 65 home improvement brands like TruStile and Reynaers to custom design stylish and durable windows and doors.

With our design skills, installation expertise, and technological abilities, the TBS Design Gallery team can install windows and doors with thin frames without sacrificing strength and elegance. We also specialize in installing Euroline steel windows and doors.

Request a consultation today for energy-efficient windows or doors by calling TBS Design Gallery in Santa Clara, CA, at (650) 416-8888.

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