There is no federal tax credit for new windows installed in 2026 or later. The Energy Efficient Home Improvement Credit under Section 25C, which paid 30% of qualifying window costs up to $600 a year, was terminated for any property placed in service after December 31, 2025.1Internal Revenue Service. FAQs for Modification of Sections 25C, 25D, 25E, 30C, 30D, 45L, 45W, and 179D Under Public Law 119-21 If your windows went in during 2025, you can still claim the credit on the return you file in 2026. If they went in later, the federal credit is off the table.
Why the Credit Ended
The Inflation Reduction Act of 2022 had extended Section 25C through the end of 2032. The One Big Beautiful Bill Act, signed on July 4, 2025, pulled that end date back to December 31, 2025. The IRS has confirmed the credit is not allowed for any qualifying property placed in service after that date.1Internal Revenue Service. FAQs for Modification of Sections 25C, 25D, 25E, 30C, 30D, 45L, 45W, and 179D Under Public Law 119-21
No other federal credit picks up where 25C left off for windows. The Section 25D Residential Clean Energy Credit still exists, but it covers solar panels, wind turbines, geothermal heat pumps, and battery storage — not windows or skylights.2Internal Revenue Service. Residential Clean Energy Credit For 2026 window projects, any incentive will have to come from your state, your utility, or the manufacturer. The rest of this article walks through the credit as it applies to 2025 installations you’re about to claim.
Who Qualifies for a 2025 Installation
The home has to be in the United States, and it has to be one you both own and use as your principal residence.3Internal Revenue Service. Frequently Asked Questions About Energy Efficient Home Improvements and Residential Clean Energy Property Credits – Qualifying Residence Several common situations fall outside that:
- Second homes and vacation properties do not qualify, even if you own them outright.4Internal Revenue Service. Updates to Frequently Asked Questions About the Energy Efficient Home Improvement Credit and the Residential Clean Energy Property Credit
- Rental properties do not qualify. A landlord cannot claim the credit for windows in a home rented to someone else.
- Renters cannot claim the credit either, even if they paid for the windows themselves.3Internal Revenue Service. Frequently Asked Questions About Energy Efficient Home Improvements and Residential Clean Energy Property Credits – Qualifying Residence
- New construction does not qualify. The credit is for improvements to existing homes.
Condo owners and co-op tenant-stockholders can claim their proportionate share of qualifying window work paid for by the association or corporation.3Internal Revenue Service. Frequently Asked Questions About Energy Efficient Home Improvements and Residential Clean Energy Property Credits – Qualifying Residence The association determines each owner’s share using a reasonable method and keeps records showing the calculation.
Which Windows Count
Not every energy-efficient window qualifies. Windows and skylights must meet the ENERGY STAR Most Efficient certification, a tier above the standard ENERGY STAR label.5Internal Revenue Service. Energy Efficient Home Improvement Credit Certification depends on two metrics: the U-factor, which measures heat loss through the window, and the Solar Heat Gain Coefficient, which measures how much solar radiation gets through the glass. Lower is better on both, and the exact thresholds vary by climate zone. A model certified for the North faces a much tighter U-factor requirement than the same product line rated for the South.
Before claiming the credit, confirm the specific model you bought carries the ENERGY STAR Most Efficient designation for your geographic area. Skylights follow the same certification rule and share the same dollar cap as vertical windows.5Internal Revenue Service. Energy Efficient Home Improvement Credit
How Much the Credit Pays
The credit is 30% of the cost of qualifying window materials, capped at $600 per year for all windows and skylights combined.6Office of the Law Revision Counsel. 26 USC 25C – Energy Efficient Home Improvement Credit Only the product cost counts. Labor, delivery, and old-window removal are excluded.5Internal Revenue Service. Energy Efficient Home Improvement Credit To reach the full $600, you need at least $2,000 in qualifying window materials. Spend less and the credit is simply 30% of what you paid. Spend more and the cap holds firm at $600.
That $600 window cap sits inside a broader $1,200 annual limit that also covers items like insulation and exterior doors.6Office of the Law Revision Counsel. 26 USC 25C – Energy Efficient Home Improvement Credit Combined credits across those categories in a single year cannot exceed $1,200.
The Non-Refundable Catch
The credit is non-refundable. It can zero out what you owe, but it will not generate a refund on its own. If your 2025 federal tax bill is $400 and you qualify for a $600 window credit, you get $400 of benefit and the remaining $200 is gone.5Internal Revenue Service. Energy Efficient Home Improvement Credit
There is also no carryforward. Any unused portion cannot be applied to a future year.7Internal Revenue Service. Frequently Asked Questions About Energy Efficient Home Improvements and Residential Clean Energy Property Credits – Timing of Credits Once 2025 closes out, whatever you didn’t use is gone. That matters if your tax liability is low because of other credits or deductions — you may not capture the full value.
Paperwork You Need
You need a manufacturer’s certification statement confirming the windows meet ENERGY STAR Most Efficient requirements. Don’t attach it to the return. Keep it in your files in case the IRS asks.8Internal Revenue Service. Instructions for Form 5695 (2025)
For 2025 installations, the IRS also requires a Qualified Manufacturer Identification Number (QMID) — a four-character alphanumeric code assigned to each qualifying product. You have to report the QMID on Form 5695 for every window and skylight you’re claiming.9Internal Revenue Service. Instructions for Form 5695 (2025) It should appear on the manufacturer’s documentation or ENERGY STAR label. If you can’t find it, contact the manufacturer or retailer. Without a valid QMID, the credit will not be allowed.
Your itemized sales receipt has to separate the cost of the window units from labor, delivery, or disposal fees, since only the material cost feeds the 30% calculation. Keep the receipt, certification, and QMID documentation for at least three years after filing, in line with the general IRS statute of limitations for examining returns.10Internal Revenue Service. How Long Should I Keep Records?
How and When to File
Claim the credit on IRS Form 5695, Residential Energy Credits. Work in Part II, entering material costs and each product’s QMID.11Internal Revenue Service. About Form 5695, Residential Energy Credits The form calculates the 30% credit and applies both the $600 window cap and the $1,200 overall limit. The result carries to Schedule 3 of Form 1040 and feeds your main return.9Internal Revenue Service. Instructions for Form 5695 (2025)
Tax software will usually handle the transfer automatically. Double-check that the program applies the $600 window subcap correctly, since some packages have had trouble distinguishing it from the broader $1,200 cap. The return is due April 15, 2026, or October 15, 2026 with an extension. The credit reduces the tax you owe on that return; it does not stand on its own as a refund.